1. Parameters of the Bass Model in Several Product Categories InnovationImitation Product/parameter parameter Technology (p)(q) B&W TV0.0650.335 Color TV0.0210.583 Room Air conditioner0.0100.454 Clothes dryers0.0730.389 Ultrasound Imaging0.0030.506 CD Player0.0280.368 Cellular telephones0.0050.506 Steam iron0.0360.318 Oxygen Steel Furnace (US)0.0010.456 Microwave Oven0.0180.337 Hybrid corn0.0000.798 Home PC 0.0030.253 Average value of 0.03 for p and an average value of 0.42 for q, taken across a couple of hundred categories.

2. Slides 1&2 don’t even agree??!! InnovationImitation Product/parameter parameter Technology (p)(q) B&W TV0.1080.231 Color TV0.0590.146 Room Air conditioner0.0060.185 Clothes dryers0.0090.143 Ultrasound Imaging0.0000.534 CD Player0.0550.378 Cellular telephones0.0080.421 Steam iron0.0310.128 Oxygen Steel Furnace (US)0.0020.435 Microwave Oven0.0020.357 Hybrid corn0.0000.797 Home PC 0.1210.281 A study by Sultan, Farley, and Lehmann in 1990 suggests an average value of 0.03 for p and an average value of 0.38 for q.

4. Use Established Parameters as Estimates by Analogy… e.g., demand for HDTV? Product group p (coef-innovat) q (coef-imitation) 1) e-toothbrush, fire extinguisher.0083.22 slow cooker, hair dryer, trash compactor, 2) e- can opener, cd’s, curling iron,.0232.32 e- blanket, heating pad, knife sharpener, lawn mower, waffle iron 3) blender, deep fryer, food.0141.48 processor, microwave oven 4) color tv, refrigerator, vcr.0200.54 5) calculator, digital watch.0249.27