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Licensed Unlicensed Requires Authentication Published by De Gruyter November 21, 2019

Taking a Ride on Mature Carrier Products to Push a New Technology: The Diffusion of Add-Ons

  • Yair Orbach EMAIL logo , Gila E. Fruchter and Naor Varsano

Abstract

This paper introduces a model for the diffusion of add-ons that consist of new industrial technologies embedded in mature products. These new technologies are targeted to improve attributes such as the performance, convenience, safety, etc., of the carrier product that incorporates them. Although the rationale for the purchase of the carrier product is driven primarily by mature market factors such as physical wear-out or changing personal needs, the innovative technologies embedded in the design of these products and the advantages they offer provide a competitive edge to the brands that incorporate them. We examine the potential growth of the market share of products that incorporate new technologies within this overall carrier market. We apply our model to the diffusion of green buildings that incorporate better thermal insulation through the use of new materials. For this purpose, we draw on surveys and industry data to estimate the parameters of the model.

Appendix

A Number of apartment building construction projects initiated per quarter

Figure 6: Considering the global trend, AR(t)= 40,000 + 1,000(t-2012), when t is the calendric year. In average AR(t)= ~ 40,000Based on data from Central Bureau of Statistics (Israel).
Figure 6:

Considering the global trend, AR(t)= 40,000 + 1,000(t-2012), when t is the calendric year. In average AR(t)= ~ 40,000

Based on data from Central Bureau of Statistics (Israel).

Appendix B: Awareness of Green Building (%)

Figure 7: Based on a study published in 2015 by Dgani R. from Geocartographia.
Figure 7:

Based on a study published in 2015 by Dgani R. from Geocartographia.

Table 5:

Awareness of Green Building (%) – Measured and fitted data approximation.

YearMeasured awareness (%)Fitted awareness
20040.0170←Awareness at launch
20050.0402p0.0178835
20060.0702q0.3322937
20070.1085
20080.1566SSE0.0065892
2009140.2155SST0.16415
2010270.2857
2011390.3663R20.959859
2012450.4548
2013540.5469
2014640.6374

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Published Online: 2019-11-21
Published in Print: 2019-11-18

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