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Create a BASS MODEL, based on this info: Brand new product (Sales in 2018 = 0)...

Create a BASS MODEL, based on this info: Brand new product (Sales in 2018 = 0) Total potential market = 5.000.000 Innovators per year = 4% (0.04) Imitators per year = 35% (0.35) Question: 1.What is the number of sales achieved ten years from now in 2028. 2.Assume we need to sell at least 5000 pieces to be profitable, when should the product be taken out of the market? 3.Reflect on strength and weaknesses of this method.

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Answer #1

Ans to Q3:

Strengths of Bass Model:

1) Is one of the most widely used forecasting method for new products

2)It is able to predict the volume of sales and the peak even though it takes only few inputs.

Weakness/Limitation of Bass Model:

1) This model can be used for a industry overall and not to a specific brand

2) This model only considers the first purchase of new product

3) It assumes that the parameters / coefficient for innovators or imitators do not change over time

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