Taking a Ride on Mature Carrier Products to Push a New Technology: The Diffusion of Add-Ons

Yair Orbach, Gila E. Fruchter, Naor Varsano

Research output: Contribution to journalReview articlepeer-review

Abstract

This paper introduces a model for the diffusion of add-ons that consist of new industrial technologies embedded in mature products. These new technologies are targeted to improve attributes such as the performance, convenience, safety, etc., of the carrier product that incorporates them. Although the rationale for the purchase of the carrier product is driven primarily by mature market factors such as physical wear-out or changing personal needs, the innovative technologies embedded in the design of these products and the advantages they offer provide a competitive edge to the brands that incorporate them. We examine the potential growth of the market share of products that incorporate new technologies within this overall carrier market. We apply our model to the diffusion of green buildings that incorporate better thermal insulation through the use of new materials. For this purpose, we draw on surveys and industry data to estimate the parameters of the model.

Original languageEnglish
Pages (from-to)23-46
Number of pages24
JournalReview of Marketing Science
Volume17
Issue number1
DOIs
StatePublished - 1 Jun 2019

Bibliographical note

Publisher Copyright:
© 2019 Walter de Gruyter GmbH, Berlin/Boston 2019.

Keywords

  • Diffusion
  • add-ons
  • carrier product
  • design
  • green buildings
  • green products

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