The Bass Diffusion Model is a predictive model developed by Frank Bass, which describes the process of how new products get adopted in a population. The model suggests that the probability of adoption is influenced by two factors: the innovation effect (how many people adopt the product out of their own initiative) and the imitation effect (how many people adopt the product due to word-of-mouth). In business strategy, the Bass Diffusion Model can be used to forecast the potential success of a new product or service in the market, helping businesses to plan their marketing and production strategies accordingly.
Follow up to the first part of our Business Strategies and Frameworks compilation, part 2 offers you...
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