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Bass model Predicts future product class sales for good s(t)=pm+[qp]Y(t1)-(q/m)[Y(t1)2] s(t) sales in period t p: initial probability of adoption(about 0.04) m: total numbers of potential buyers g: a diffusion rate(about 0.3) Y(t-1): total number of purchases by last period 10-2310-23 Bass Model • Predicts future product class sales for good s(t) = pm + [q-p]Y(t-1) – (q/m) [Y(t-1)2] s(t): sales in period t p: initial probability of adoption (about 0.04) m: total numbers of potential buyers q: a diffusion rate (about 0.3) Y(t-1): total number of purchases by last period
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