Vol. 1, Issue 1, Part E (2014)

Abstract
Technology development, which leads to product improvement, encourages adoption and extends the market. The growing market opportunities serve as a major incentive for industries to invest in improving the product. This study offers a new product diffusion model that simultaneously captures the effects of competition between different brands and those of technological substitution between successive generations in a product. Results show that the market potential of one category or generation is significantly affected by others and by the overall structure of a geographic market. The model studied may be used where there are three generations of technological substitution as the pattern of analysis for two generations technology, our models will be a good tool for the analysis of inter category and generations dynamics of any fast growing market.