Research On The Diffusion Model Of Repeat Purchase And Its Application

Innovation diffusion which is vital to the realization of profit,has been always an important research field among product innovation.As the classic innovation diffusion model,Bass model whose parameters could express actual economical meaning,has been researched deeply and applied extensively in the theory and application field.However,there still exist some limitations for the Bass model,for example not taking repeat purchase into account.In fact,repeat purchase can bring greater benefits for the company.In the meantime,considering repeat purchase can enhance the practicability of model,and enrich the theoretical research of diffusion model and the new product diffusion.So,this paper fixed the original hypothesis that the consumer would buy only one unit of the new product,and focused on the study of repeat purchase diffusion model,trying to make a breakthrough in the improvement of empirical research.Based on the summaries of the literature about diffusion theory,this paper analyzed the technological innovation diffusion theory and model,particularly Bass model and its extended model,which laid a theoretical foundation for later research.Then,the paper studied the repeat purchase phenomenon and its model evolution,summarized the typical repeat purchase models and made a further research on the diffusion model of repeat purchase.Applying the theory to practice,this paper conducted an empirical study by using the historical order number of the E-commerce shop.The comparison between the repeat purchase diffusion model and the Bass model,validated the practicality and superiority of the improved model.Further more,the paper applied the repeat purchase diffusion model to the market segmentation,which provided a new research perspective.Lastly,this paper gave a comprehensive summary of the research achievements,and discussed the shortness and the following research directions.