Application of the Bass diffusion model for estimating the lifecycle of a retail store
Abstract
This article presents a practical application of Lifecycle estimation using the Bass Diffusion Model in the case of a retail store. The results from the application of the model show that the probability that a person will buy driven by advertising is 5%, whereas the probability of buying based on the recommendation of another customer is 23%. According to the sales Lifecycle results, the store’s monthly sales have stabilized and its market share is near its peak.Downloads
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