Lea M. Wakolbinger

Agent-based simulation of innovation diffusion: a review

Mathematical modeling of innovation diffusion has attracted strong academic interest since the early 1960s. Traditional diffusion models have aimed at empirical generalizations and hence describe the spread of new products parsimoniously at the market level. More recently, agent-based modeling and simulation has increasingly been adopted since it operates on the individual level and, thus, can capture complex emergent phenomena highly relevant in diffusion research. Agent-based methods have been applied in this context both as intuition aids that facilitate theory-building and as tools to analyze real-world scenarios, support management decisions and obtain policy recommendations. This review addresses both streams of research. We critically examine the strengths and limitations of agent-based modeling in the context of innovation diffusion, discuss new insights agent-based models have provided, and outline promising opportunities for future research. The target audience of the paper includes both researchers in marketing interested in new findings from the agent-based modeling literature and researchers who intend to implement agent-based models for their own research endeavors. Accordingly, we also cover pivotal modeling aspects in depth (concerning, e.g., consumer adoption behavior and social influence) and outline existing models in sufficient detail to provide a proper entry point for researchers new to the field.

The Effectiveness of Combining Online and Print Advertisements: Is the Whole Better than the Individual Parts?

ABSTRACT Cross-media advertising has received wide attention from practitioners over the last years, but there are only few experimental studies that analyze the effectiveness of integrating online and print advertising. Contributing to this relevant research field, this article analyzes advertising effectiveness of print and online media as well as the impact of combining these two media forms on overall advertising effectiveness. Our study supports existing findings that print and online advertising feature the same advertising effectiveness. Our experimental data, however, also indicate advantages of cross-media advertising.

An agent-based simulation approach for the new product diffusion of a novel biomass fuel

Marketing activities support the market introduction of innovative goods or services by furthering their diffusion and, thus, their success. However, such activities are rather expensive. Managers must therefore decide which specific marketing activities to apply to which extent and/or to which target group at which point in time. In this paper, we introduce an agent-based simulation approach that supports decision-makers in these concerns. The practical applicability of our tool is illustrated by means of a case study of a novel, biomass-based fuel that will likely be introduced on the Austrian market within the next 5 years.

An agent-based simulation model for the market diffusion of a second generation biofuel

Second generation biofuels are widely considered a promising energy alternative to conventional (fossil) fuels. Although they will not completely replace fossil fuels (e.g., due to the limited availability of biomass), these high-quality biofuels can contribute to reducing emissions and strengthening a countrys energy autonomy. In Austria, a team at the Vienna University of Technology is developing a biomass-to-liquid technology based on the Fischer-Tropsch synthesis. While the remaining technical obstacles are expected to be overcome in due time, the market introduction of the novel biofuel also requires substantial investments. In this context, we developed an agent-based simulation model that can provide potential investors with forecasts for the biofuels market diffusion. This paper describes the model and presents simulation results.

Multi-channel management: an exploratory study of current practices

While web services have enabled seamless interoperability among heterogeneous IT implementations for multiple channels, innovative information and business services may further advance multi-channel integration. In investigating current practices of multi-channel management as a prerequisite for developing proper services, this paper may prepare the ground for such endeavours. It provides a literature review as well as insights from interviews with practitioners from top and middle management in major firms operating multiple channels in Austria. We discuss competitive advantages as well as challenges to be faced when establishing multiple distribution channels, e.g., by adding a mobile channel to an existing brick-and-mortar store, and outline measures of coordinating and integrating multiple channels. It can be shown, that multi-channel practice considerably differs between industries. Multi-channel integration activities, in particular, so far only play a minor role, but constitute a promising field of research in the forthcoming decade.

A Spatial Simulation Model For The Diffusion Of A Novel Biofuel On The Austrian Market.

To ensure long-term security of energy supply and to mitigate climate change, sustainable low-carbon alternatives to fossil fuels are needed. Second generation biomassto-liquid biofuels provide such an alternative and are widely considered a promising technology that may overcome the environmental and economic problems associated with first generation biofuels. In Austria, a research group at the Vienna University of Technology is developing such a biofuel based on Fischer-Tropsch synthesis. While the remaining technical challenges are expected to be overcome in due time, the market introduction also requires substantial investments. In this work, we introduce an agent-based simulation model that can provide potential investors with forecasts for the biofuel’s market diffusion. The model considers initial and repeat purchases, multiple competing products, and the spatial dispersion of both consumers and potential points of sale. Given limited production capacity, the latter feature supports decision makers in choosing (initial) points of sale with respect to rich sources of biomass as well as the geographic concentration of consumers.