A Bass Model parameter forecast conducted among market experts arrived at the following conclusion. 

Experts unanimously concluded that Dyson Zone would be likely adopted as quickly as a successful past innovation like the smartphone. Yet, though innovation and imitation parameters would be the same as the smartphone, experts also pointed out that the market potential of the product to be much lower, no more than 5% (i.e., 1/20^th) of the smartphone's market potential. 

The innovation parameter p, imitation parameter q, and market potential M for smartphones in the US market are:

p = 0.049

q = 0.31

M = 150 (in million users)

 

The Bass Model predicts the market adoption in year t as:  

Where: n represents the number of customers adopting the concept in a given year, N represents the cumulative number of all customers from start year until (and including) a given year, and t represents the year. 

Given the experts' conclusions, predict the unit sales of Dyson Zone in the first 5 years after launch.

(Note: sales start in Year 1, so cumulative sales in Year 0 is zero)

Transcribed Image Text:

t-1 n₁ = ( (p+qN+)(M-N₁)) t-1 n₁ = ( (p+qN+)(M-N₁))

Answer rating: 100% (QA)

To predict the unit sales of Dyson Zone in the first 5 years after launch using the Bass Model you c... View the full answer