To examine cross-country diffusion of new products, marketing researchers have to rely on a multivariate product growth model. We put forward such a model, and show that it is a natural extension of the original Bass (1969) model. We contrast our model with currently in use multivariate models and we show that inference is much easier and interpretation is straightforward. In fact, parameter estimation can be done using standard commercially available software. We illustrate the benefits of our model relative to other models in simulation experiments. An application to a three-country CD sales series shows the merits of our model in practice.

Additional Metadata
Keywords diffusion, econometric models, international marketing
JEL Econometric Methods: Multiple/Simultaneous Equation Models; Multiple Variables: Other (jel C39), Marketing (jel M31)
Persistent URL
Series Tinbergen Institute Discussion Paper Series
Boswijk, H.P, Fok, D, & Franses, Ph.H.B.F. (2006). A New Multivariate Product Growth Model (No. TI 06-027/4). Tinbergen Institute Discussion Paper Series. Retrieved from