| The essence of network economy is network externalities, which make the competition among companies and consumer manners present some new characteristics. This paper mainly discuss how to quicken the diffusion of innovation products by making appropriate diffusion strategies.This paper has proved that network externalities have strengthened the necessity of making diffusion strategies for innovation products with network externalities. It has been proved that installed base play an important role in the decisions of consuming in markets with network externalities. In the markets with network externalities the first-mover advantages and the relative advantages of innovation products do not work as effectively as in the market without network externalities, so the paper put forward some diffusion strategies for innovation products with network externalities, such as mass targeting, preannouncement, penetration pricing, bundling and product sampling.The analysis suggests that targeting broadly can quickly expand the installed base and lock in the mass market for products characterized by network externalities; pre-announcing as the most crucial marketing strategies used in standard battles can be used to influence the consumers' expectations and convince them that the product will become the dominant standard; using penetration pricing strategies can help the companies gain a faster takeoff of installed base; and the advantage of bundling strategy for products characterized by network externalities is to expand the installed base by increasing the extrinsic value of the product to any single in the network; finally, product sampling does quicken the diffusion speed of diffusion. Especially, for the innovation products, the imitation coefficient will be influenced by product sampling and network externalities, which will then accelerate the diffusion process. |
