Marketing: Bass Model Equation
Slides are attached. Easy problems. (pretty much math problem)
1. Using the equations that are given on both slide 11 and slide 12 to solve the porblem on slide 11
Hint: The best way to solve the math portion, select 3 points in the table, and solve for a,b,c, and then use the given equationss in Slide 12 to solve for N, p, q.
Further explaination and clarification: On slide 12, the variables a, b, and c are used as an algebraic trick to solve for p, q, and N. What you will plug in are the actual sales numbers (which is the number in the table “sales in each period”).
2. Please qualitatively describe how a marketer can use historical data to estimate future sales per the Bass model framework. Discuss/Think about also why your forecasts per Bass’s model may differ from the actual sales numbers. Recall Bass’s own work on slide 9 shows deviations from actual black-and-white TV sales – why do you think that is?
(What is Bass Model: requires some historical data, e.g., a few periods of observations for a recently introduced produc, or past records of a similar product. It predict how mant customers will adopt at what timing.)