IMPACT OF MARKET EXPANSION ON BRAND DIFFUSION: THE CASE OF MINI PASSENGER VEHICLE IN CHINA

摘要

Based on the theory of diffusion, industry market expansion is incorporated in the classical Bass diffusion model. The model which assumes that industry market expansion simultaneously influenced the various brands diffusion within a product category at different level is proposed to examine the impact of industry market factors on brand diffusion. The results of China mini passenger vehicle in recent 10 years indicate that the market expansion acts an important role in brand diffusion. Meanwhile the empirical results also validate the effectiveness of incorporating market expansion variables in the brand diffusion model.