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Chinese Journal of Management Science ›› 2019, Vol. 27 ›› Issue (12): 164-174.doi: 10.16381/j.cnki.issn1003-207x.2019.12.016

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The Analysis of Affect Mechanism of The Brand Competition to New Products Diffusion with Repeat Purchase-Based on The Small-World Network

WANG Zhan-zhao1,2   

  1. 1. School of Business Administration Research Center for Energy Economics, Henan Polytechnic University, Jiaozuo 454000, China;
    2. Taihang Development Research Institute, Henan Polytechnic University, Jiaozuo 454000, China
  • Received:2017-10-25 Revised:2019-08-16 Online:2019-12-20 Published:2019-12-30

Abstract: The previous literatures mainly focus on the monopoly market as the context of new product diffusion, but in real world, new product diffusion in the competitive market is more prevalent and complex. In the context of competitive market, consumers need to compare the adoption utility of new product to the competitive products, then to determine which product to adopt. In this process, competitive factors, such as market entry time and switching cost, play a key role. In order to analyze the influence of competitive factors on new product diffusion, a brand competition model of new product diffusion based on the threshold theory is built considering the real situation about repeat purchase, and the hypothesis about "monopoly market" and "one-time purchase" derived from traditional macro diffusion model is relaxed to "competitive market" and "repeat purchase". Then the interaction is simuated between brand competition and new product diffusion in small-world network applying a multi-agent modeling method. The results show that the impact of switching costs on the speed and depth of the new product diffusion has an "criteria area", in which there is no significant interaction between them. There is an negative interaction between entry time and the speed of new product diffusion, but the result is the opposite in the depth. The factor of repeat purchase can amplify or reduce the interaction between switching costs, entry time and new product diffusion. The contribution of this paper is not only to enrich and improve the theory of competitive product diffusion,but also to provide the proposals on promoting the new product diffusion for enterprise.

Key words: repeat purchase, brand competition, new product diffusion, small-world network

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