Podcast
Questions and Answers
According to the Bass model, what is the primary driver of diffusion early in the process?
According to the Bass model, what is the primary driver of diffusion early in the process?
- Economic incentives
- Interpersonal communication
- Mass media (correct)
- Government regulations
What does the Bass model suggest becomes more influential as time passes in the diffusion process?
What does the Bass model suggest becomes more influential as time passes in the diffusion process?
- Interpersonal communications (correct)
- Government subsidies
- Technological advancements
- Mass advertising campaigns
In the context of technology adoption, what is a 'flow benefit'?
In the context of technology adoption, what is a 'flow benefit'?
- A benefit that is only available for a short period of time
- A one-time payment received when adopting a new technology
- Benefits received continuously over the life of the technology (correct)
- A benefit that is specific to a particular industry
What is the primary focus of technology policy specialists regarding the diffusion of new technologies?
What is the primary focus of technology policy specialists regarding the diffusion of new technologies?
What is a crucial factor in understanding the variation in technology diffusion across different countries?
What is a crucial factor in understanding the variation in technology diffusion across different countries?
When considering the decision to adopt a new technology, the choice is best understood as:
When considering the decision to adopt a new technology, the choice is best understood as:
In the context of the Bass model, what has empirical research revealed about the relative roles of interpersonal communication and media in diffusion?
In the context of the Bass model, what has empirical research revealed about the relative roles of interpersonal communication and media in diffusion?
What perspective on diffusion is characteristic of both the marketing literature and technology policy specialists?
What perspective on diffusion is characteristic of both the marketing literature and technology policy specialists?
According to Figure 2, approximately what percentage of manufacturing horsepower was attributed to electricity in 1930?
According to Figure 2, approximately what percentage of manufacturing horsepower was attributed to electricity in 1930?
Based on the graphs, which technology achieved the closest to 100% market saturation?
Based on the graphs, which technology achieved the closest to 100% market saturation?
In Figure 2, around what year did the share of electric horsepower in manufacturing surpass 50%?
In Figure 2, around what year did the share of electric horsepower in manufacturing surpass 50%?
According to the graphs, which of these innovations saw the most rapid increase in market share between 1920 and 1940?
According to the graphs, which of these innovations saw the most rapid increase in market share between 1920 and 1940?
Which technology, according to the graphs, shows a consistently steep upward trajectory almost until the end of the time period?
Which technology, according to the graphs, shows a consistently steep upward trajectory almost until the end of the time period?
Based on the information given, what is the main subject of the 'QWERTY controversy'?
Based on the information given, what is the main subject of the 'QWERTY controversy'?
What is the primary reason that adoption of a new technology is typically considered an absorbing state?
What is the primary reason that adoption of a new technology is typically considered an absorbing state?
According to Box 1, in what decade was Paul David's influential study on the QWERTY keyboard layout published?
According to Box 1, in what decade was Paul David's influential study on the QWERTY keyboard layout published?
Why might the adoption of a new technology be delayed?
Why might the adoption of a new technology be delayed?
According to the information provided, what was the main finding regarding Dvorak keyboards?
According to the information provided, what was the main finding regarding Dvorak keyboards?
Which of the following best describes the concept of 'sunk costs' in the context of technology adoption?
Which of the following best describes the concept of 'sunk costs' in the context of technology adoption?
What is the primary difference between innovations in 'practice' and 'physical product' innovations according to the text?
What is the primary difference between innovations in 'practice' and 'physical product' innovations according to the text?
Which of the following situations best illustrates why a new technology adoption decision is not always an absorbing state?
Which of the following situations best illustrates why a new technology adoption decision is not always an absorbing state?
When is the 'ceiling' of adoption expected to be less than 100% of the potential user base?
When is the 'ceiling' of adoption expected to be less than 100% of the potential user base?
Why does the characteristic of 'sunk costs' play a crucial role in technology adoption?
Why does the characteristic of 'sunk costs' play a crucial role in technology adoption?
What is the approximate adoption percentage at the inflection point mentioned for a logit distribution?
What is the approximate adoption percentage at the inflection point mentioned for a logit distribution?
According to the provided text, what is an 'option', in the context of technology adoption?
According to the provided text, what is an 'option', in the context of technology adoption?
What shape do the diffusion curves of new inventions, across time, typically follow according to the text?
What shape do the diffusion curves of new inventions, across time, typically follow according to the text?
Which statement best explains why the text brings up the hula hoop craze and fad diets?
Which statement best explains why the text brings up the hula hoop craze and fad diets?
What does the text suggest about the typical length of time for an innovation to diffuse significantly?
What does the text suggest about the typical length of time for an innovation to diffuse significantly?
Which of the following is NOT listed as one of the main groups influencing the diffusion of innovations?
Which of the following is NOT listed as one of the main groups influencing the diffusion of innovations?
What significant conclusion can be made from the analysis of diffusion rates for different products in Japan between 1989 and 1995?
What significant conclusion can be made from the analysis of diffusion rates for different products in Japan between 1989 and 1995?
What measure does Golder and Tellis (1997) use in their non-parametric discrete version of determining the inflection point?
What measure does Golder and Tellis (1997) use in their non-parametric discrete version of determining the inflection point?
Based on the text, what is a key reason why some innovations take much longer to diffuse than others?
Based on the text, what is a key reason why some innovations take much longer to diffuse than others?
Which product saw the highest percentage increase in diffusion between 1989 and 1995?
Which product saw the highest percentage increase in diffusion between 1989 and 1995?
What was the diffusion percentage of personal computers in 1995?
What was the diffusion percentage of personal computers in 1995?
Which appliance had the highest diffusion percentage in 1989?
Which appliance had the highest diffusion percentage in 1989?
Which product had the smallest increase in its diffusion percentage from 1989 to 1995?
Which product had the smallest increase in its diffusion percentage from 1989 to 1995?
What was the diffusion percentage of cordless phones in 1995?
What was the diffusion percentage of cordless phones in 1995?
What phenomenon leads to a positive feedback loop from the installed base to consumer adoption?
What phenomenon leads to a positive feedback loop from the installed base to consumer adoption?
What issue can arise when there are multiple possible standards and small early events favoring one?
What issue can arise when there are multiple possible standards and small early events favoring one?
Which researchers added heterogeneity in consumer tastes to the models of diffusion?
Which researchers added heterogeneity in consumer tastes to the models of diffusion?
What do Katz and Shapiro's studies primarily focus on in competitive markets?
What do Katz and Shapiro's studies primarily focus on in competitive markets?
In what way can the speed of diffusion be affected in the presence of network externalities?
In what way can the speed of diffusion be affected in the presence of network externalities?
What do the theories discussed in the literature emphasize regarding competing firms?
What do the theories discussed in the literature emphasize regarding competing firms?
What type of goods primarily exhibit properties leading to network externalities, as described by Shapiro and Varian?
What type of goods primarily exhibit properties leading to network externalities, as described by Shapiro and Varian?
What can be a consequence of losing standards battles in markets influenced by network externalities?
What can be a consequence of losing standards battles in markets influenced by network externalities?
Flashcards
Bass Model
Bass Model
The Bass model suggests that mass media influence adoption early on, while interpersonal communication becomes more impactful over time.
Interpersonal Communication in Diffusion
Interpersonal Communication in Diffusion
Word-of-mouth communication plays a significant role in technology adoption, surpassing media influence in many cases.
Adopting vs. Deferring Decision
Adopting vs. Deferring Decision
Adopting a new technology is not a binary choice, but rather a decision between adopting now or delaying the decision.
Flow Benefits of Technology Adoption
Flow Benefits of Technology Adoption
Signup and view all the flashcards
Peak Adoption Rate
Peak Adoption Rate
Signup and view all the flashcards
Diffusion Time
Diffusion Time
Signup and view all the flashcards
Adoption Benefits
Adoption Benefits
Signup and view all the flashcards
Adoption Costs
Adoption Costs
Signup and view all the flashcards
Social and Industry Context
Social and Industry Context
Signup and view all the flashcards
Uncertainty and Information Gaps
Uncertainty and Information Gaps
Signup and view all the flashcards
Sunk Costs
Sunk Costs
Signup and view all the flashcards
Absorbing State of Adoption
Absorbing State of Adoption
Signup and view all the flashcards
Option Value of Waiting
Option Value of Waiting
Signup and view all the flashcards
Fads or Fashion
Fads or Fashion
Signup and view all the flashcards
Innovations in Practice
Innovations in Practice
Signup and view all the flashcards
Costs of Innovations in Practice
Costs of Innovations in Practice
Signup and view all the flashcards
Adopting vs. Deferring
Adopting vs. Deferring
Signup and view all the flashcards
Flow Benefits
Flow Benefits
Signup and view all the flashcards
Increasing Returns to Adoption
Increasing Returns to Adoption
Signup and view all the flashcards
Path Dependence
Path Dependence
Signup and view all the flashcards
Consumer Heterogeneity
Consumer Heterogeneity
Signup and view all the flashcards
Localization of Information Spillovers
Localization of Information Spillovers
Signup and view all the flashcards
Network Externalities in Competitive Strategy
Network Externalities in Competitive Strategy
Signup and view all the flashcards
Rate of Diffusion
Rate of Diffusion
Signup and view all the flashcards
Excess Momentum
Excess Momentum
Signup and view all the flashcards
Excess Inertia
Excess Inertia
Signup and view all the flashcards
Diffusion Rate
Diffusion Rate
Signup and view all the flashcards
Diffusion
Diffusion
Signup and view all the flashcards
Table 1: Diffusion in Japanese Households
Table 1: Diffusion in Japanese Households
Signup and view all the flashcards
Figure 1: Diffusion of Electric Motors in U.S.
Figure 1: Diffusion of Electric Motors in U.S.
Signup and view all the flashcards
Product Diffusion
Product Diffusion
Signup and view all the flashcards
What is diffusion of innovation?
What is diffusion of innovation?
Signup and view all the flashcards
What is QWERTY layout controversy?
What is QWERTY layout controversy?
Signup and view all the flashcards
What are network externalities?
What are network externalities?
Signup and view all the flashcards
What is the S-shaped adoption curve?
What is the S-shaped adoption curve?
Signup and view all the flashcards
What influences adoption decisions?
What influences adoption decisions?
Signup and view all the flashcards
Why is communication crucial in diffusion?
Why is communication crucial in diffusion?
Signup and view all the flashcards
Why are early adopters important?
Why are early adopters important?
Signup and view all the flashcards
What is the Bass model?
What is the Bass model?
Signup and view all the flashcards
Study Notes
Innovation and Diffusion
- Innovation and new technologies contribute substantially to economic growth and welfare.
- The rate and manner of diffusion of innovations significantly impacts their economic and social impact.
- Diffusion is a neglected area in the economics of innovation.
- This study provides comparative and historical perspectives on diffusion, examining economic, social, and institutional determinants.
Conceptual Frameworks
- Diffusion of innovations studied from various perspectives (historical, sociological, economic, network).
- Rogers' Diffusion of Innovations (4th edition) provides a framework, classifying adoption by: relative advantage, compatibility, complexity, trialability, and observability.
- Other attributes influencing diffusion include: decision-making processes, communication channels, social environment, and agency promotion efforts.
Costs of Adopting New Technology
- Costs encompass acquisition price and complementary investments (training, equipment).
- Sunk costs (costs not recoverable after adoption) influence adoption decisions.
- Adjusting operations or work processes may be costly, delaying adoption.
- Investment decisions in new technologies are influenced by financial factors and uncertain environments.
Information and Uncertainty
- Adopting new technologies requires information about their existence and applicability.
- Advertising and experiences of others influence adoption decisions.
- Geographical proximity and interactions with others influence knowledge/adoption.
- Uncertainty and costs affect adoption rate (option value of waiting).
Market Size, Industry Environment, and Market Structure
- Large dominant firms may adopt innovations sooner.
- Market size and structure influence technology adoption.
- Adoption behavior differs across industries.
Cultural and Social Determinants
- Cultural attitudes and norms influence rates of technology adoption.
- Religious beliefs and social values play a role in shaping adoption decisions.
- Variability in adoption rates among developing countries can be associated with these factors.
Modeling Diffusion
- S-shaped adoption curves generally characterize diffusion.
- Adoption patterns are influenced by consumer heterogeneity or learning.
- Models can incorporate either diffusion or epidemic models (learning or network).
- Option value of waiting for adoption affects decision time.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the principles of the Bass model and its implications for technology adoption and diffusion. This quiz covers key concepts like flow benefits, the influence of communication, and factors affecting technology diffusion in different countries. Challenge your understanding of technology policy and historical context.
