Diffusion model of successive generations associated with competition and heterogeneity: The mini passenger vehicle in China case

Based on the theory of diffusion, competition and heterogeneity are incorporated in the classical multi-generation products diffusion model. The models which assume that competition and heterogeneity variables simultaneously influenced the diffusion of successive generations at different level are proposed to examine the impact of factors on the diffusion of multi-generation products. The mini passenger vehicle, which is one of China's automobile segment markets, is empirical studied. The results of China mini passenger vehicle in recent 11 years indicate that competition and heterogeneity act an important role in the diffusion of multi-generation vehicle products. Meanwhile, the empirical results also validate the perfect fitness and forecasting accuracy of the suggested model incorporating competition and heterogeneity variables in multi-generation products diffusion.