The Research On The Innovation Diffusion Model Based On Consumer Individual Preference And Perception

In recent society, with the development of economic and people’s lift level, the innovation which was launched by companies all face the marketing competition and stress. Many enterprises increase their abilities of developing new products according to the market needs, in order to consisting the company’s long term development. Then the key of a successful development is the great diffusion of innovation. Precious research shows that enterprises predict the diffusion of innovation based on the famous Bass model. Even that there are many further research of Bass model, such as expending the constraint and adding parameters. But all of these work are all building the models based on macroscopic view, they agree that all the consumer population are same. Actually, in terms of real market environment, the consumer has heterogeneity, such as different risk adverse and price sensitive. So whatever for theories and experimental application, using a micro-modeling approach to develop an innovation diffusion model is a valuable research in Marketing.A model of the innovation diffusion process is developed using a micro-modeling approach that explicitly considers the determinants of adoption at the individual level in a decision analytic framework, and incorporates heterogeneity in the population with respect to preference characteristics. This paper uses many scientific theories and methods of different fields to make this research. On one side, we develop the micro-view diffusion model in term of the theories, on the other side, we use OLS process to estimate the parameters in the model and use the model into real environment. Then make sure the predictive performance of the diffusion model.In the view of the framework in this article, first, we summarize the background and significance of this research, and set out the literatures of new products diffusion model and the relative theories of micro-modeling approach. Secondly, we develop the diffusion model through the key parameters of consumer individual preference and perception and discuss the difference and connection between the micro-model and Bass model. Thirdly, we use the innovation which is the new type of car in PM enterprise to experimentally apply our model and make sure the predictive ability of our model. Last, summarize the results and limitations, and then make a forward of this research.