Innovative product’s price control based on a model of innovation diffusion

The problem of evaluation of the market susceptibility to innovative product by an enterprise-innovator is the subject under consideration. The value of pricing as a factor of innovations diffusion is analyzed. The possibilities accounting the impact of pricing strategy and tactics on the enterprise’s innovation performance results are determined that are provided by certain models of innovation diffusion. Modification of generalized Bass model is proposed that is presented in the form of differential equations system describing the market participants’ behavior and allowing studying the process of innovations diffusion as response to changing of price and other parameters. The conclusion was made about the possibility of using the proposed model for development of the innovative product pricing strategy.

innovation-oriented enterprise, innovation product, diffusion of innovations, factors of innovations diffusion, speed of innovations diffusion, perception of innovations, market of innovations, innovation diffusion model, pricing of innovation, the Bass model