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Chinese Journal of Management Science ›› 2008, Vol. 20 ›› Issue (6): 105-111.

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An Improvement of Trial-Repeat Diffusion Model:Logit Model and NILS Estimation

LI Ji1, WANG Han-sheng2, TU Ping3   

  1. 1. Dept of Marketing, Business School, Central University of Finance and Economics, Beijing 100081, China;
    2. Dept of Business, Guanghua School of Management, Peking University, Beijing 100871, China;
    3. Dept of Marketing, Guanghua School of Management, Peking University, Beijing 100871, China
  • Received:2008-06-19 Revised:2008-12-02 Online:2008-12-31 Published:2008-08-20

Abstract: Based on the existing trial-repeat diffasion model,a nonlinear model is developed by modeling the trial rate and the repeat purchase rate as logit functions of marketing-mix variables. A nonlinear iteration least square(NILS) estimator is also proposedfor the purpose of model building and testing.Results of Monte Carlo experiment indicate the validity of this estimation. This new model can be used for sales predicting and marketing-mix analysis of new product.

Key words: new product diffusion model, nonlinear model, iterative least squares, fast-moving consuming goods

CLC Number: