Question:
What are the demand side determinants of diffusion?
Author: Hjalmer PedersenAnswer:
1. Market awareness – better promotion (especially ‘push’ campaigns) speeds up diffusion. 2. Network effects – diffusion increases as more people adopting the innovation makes it more desirable (e.g. Facebook). 3. Customer propensity to adopt – targeting to the early adopters (often younger and wealthier consumers) speeds up diffusion by creating a bandwagon effect.
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