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Archives: Literature


A dynamic model of Market share and sales behavior

Bass, F. M. (1963)

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Research Paper
Abstract: The problem of measuring the impact of advertising dollars on market share is a complex one. This paper describes the four basic types of market share behavior over time. An "Imitation" model is developed to explain serial correlation in the number of new customers buying a brand in each time period. The analysis casts doubt on the feasibility of measuring the impact of advertising expenditures on sales through analyzing aggregative data.


Describes an imitation model to explain when two types of distinct market segments (innovators and imitators) are likely to make a first purchase of a product. This later evolves into Bass' Diffusion model for innovation.
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A New Product Growth Model for Consumer Durable

Bass, F. M. (1969)

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Research Paper
Abstract: A growth model for the timing of initial purchases of new products is developed and tested empirically against data for eleven consumer durables. The basic assumption of the model is that the timing of a consumer's initial purchase is related to the number of previous buyers. A behavioral rationale for the model is offered in terms of innovative and imitative behavior. The model yields good predictions of the sales peak and the timing of the peak when applied to historical data. A long range forecast is developed for the sales of color television sets.


Develops a growth model and theory for when a consumer makes their first purchase of new consumer products. This is now known better as Bass Diffusion Model. And it helps us with several questions about adoption, such as how many products should we produce per year; what are the true sizes of Rogers adopter types.
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Whither Services Marketing? In Search of a New Paradigm and Fresh Perspectives

Lovelock, C., Gummesson, E. (2004)

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Research Paper
Abstract: This article examines the received wisdom of services marketing and challenges the validity and continued usefulness of its core paradigm, namely, the assertion that four specific characteristics—intangibility, heterogeneity, inseparability, and perishability—make services uniquely different from goods. An alternative paradigm is proposed, based on the premise that marketing exchanges that do not result in a transfer of ownership from seller to buyer are fundamentally different from those that do. It posits that services offer benefits through access or temporary possession, instead of ownership, with payments taking the form of rentals or access fees. This rental/access perspective offers a different lens through which to view services. Important implications include opportunities to market goods in a service format; the need for more research into how time is perceived, valued, and consumed; and the notion of services as a means of sharing resources.


Challenges the marketing attributes of services. The 5I’s of intangibility, inseperable, no inventory, inconsistent and requiring involvement. It finds them to be less generally applicable than everyone unquestionably assumes. Finding many examples where they are not the full explanation of differences between services and goods (products). They propose looking at services through the lens of […]
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Value co-creation in service logic: A critical analysis

Grönroos, C. (2011)

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Research Paper
Abstract: The underpinning logic of value co-creation in service logic is analysed. It is observed that some of the 10 foundational premises of the so-called service-dominant logic do not fully support an under-standing of value creation and co-creation in a way that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the inter-action concept, the locus as well as nature and content of value co-creation cannot be identified. Value co-creation easily becomes a concept without substance. Based on the analysis in the present article, it is observed that the unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but rather that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, seven statements included in six of the foundational premises are reformulated accordingly.


Challenges the Service-Dominant Logic view that value is always co-created between users and providers of services. The main point being that customers are not always co-creators of value however under certain circumstances the provider gets to co-create with the customer. The paper updates the 10 principles of SDL to 7 accordingly.
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