MODELING AND SIMULATION OF THE MULTI-GENERATIONS PRODUCTS DIFFUSION

Innovative product is the key factor to business competition. A dynamic diffusion model of two generation products is established by considering the diffusion properties of multi-generational and competitive alternative effect, including expanded the application of Bass model. Most of the existing research did not consider the effect of product unit variable cost, in this model the learning effect of variable cost and product gravity are taken into consideration, and their influence to product diffusion and product profit are also analyzed. This thesis is going to describe the mathematical models of the product diffusion and will use the MATLAB to simulate the model, revealing the rationality of the model. Product diffusion is analyzed according the typical parameters’ changes, after investigating model simulation results, the interactive relationship between the factors and the system
structure characteristics are performed, which provide a foundation to make policies of enterprise market.