Lecture 6

Question 1

Bass Diffusion model (the idea)

Answer 1

“The probability that an initial purchase will be made at T given that no purchase has yet been made is a linear function of the number of previous

Question 2

Bass diffusion model (the parameters)

Answer 2

› n(t): number of adopters a t
› N(t): total number of adopters before t › M: potential market size
› p: innovation parameter › q: imitation parameter

Question 3

Bass diffusion disadvantage and advantage

Answer 3

It is a very simple model!

Question 4

Opinion leadership

Answer 4

› Opinion leaders are consumers that exert a disproportionate influence on those around them (King and Summers 1970)
› Opinion leadership is…
a combination of influence and expertise product specific
notthesameasbeinganearlyadopter

Question 5

Market mavenism

Answer 5

Characterized by general marketplace expertise

Question 6

Actors

Answer 6

Nodes

Question 7

Ties

Answer 7

Edges

Question 8

Degree centrality

Answer 8

› The number of ties an actor has

› Often used as a measure of influence of an actor in a network

Question 9

Hubs

Answer 9

› (Extremely) High degree centrality

Question 10

Betweenness centrality

Answer 10

› Number of times that a focal actor occurs on the shortest path between all pairs of actors in a network

Question 11

Closeness centrality

Answer 11

› The average geodesic distance between a focal actor and all other actors in a network