Eitan Muller

Eitan Muller
New York University | NYU · Leonard N. Stern School of Business

PhD

About

135
Publications
45,947
Reads
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15,872
Citations
Citations since 2016
28 Research Items
5297 Citations
20162017201820192020202120220200400600800
20162017201820192020202120220200400600800
20162017201820192020202120220200400600800
20162017201820192020202120220200400600800

Publications

Publications (135)
Article
Full-text available
Based on new data, we replicate Mahajan et al.’s (1990) paper on adopter categories and Goldenberg et al.’s (2002) paper on saddles and offer explanations and extensions. We use a new dataset to replicate the results, namely, the U.S. Consumer Technology Association’s Sales & Forecasts, which provides longitudinal data on numerous consumer electron...
Article
Though the mobile app market is substantial and growing fast, most app providers struggle to monetize apps profitably. Monetizing apps is done in two ways: a) selling advertising space within a free version of the app, and b) selling a paid version, termed freemium or in-app purchase strategy. In this paper, we present a framework for monetization...
Article
Full-text available
We investigate how the status and functional benefits of cars’ brands lose value over time. Theoretically, we show that brands with a higher status, or that appeal to status-conscious consumers, exhibit steeper price decline over time. Empirically, we take advantage of the phenomenon of twin cars – pairs of car models that are nearly identical from...
Article
Full-text available
This paper examines the role of software piracy in digital platforms where a platform provider makes a decision of how much software to produce in-house and how much to outsource from a third-party software provider. Using a vertical differentiation model, we theoretically investigate how piracy influences the software outsourcing decision. We find...
Article
Full-text available
I offer reasons why disruption theory needs a revamp, define post-adoption then point out the gap between the considerable literature in marketing on post-adoption behavior, and the dearth in its immediate corollary, namely disruption. I then criticize the current definition of disruption and offer one instead, followed by three recent examples - i...
Article
Full-text available
Though the mobile app market is substantial and growing fast, most app providers struggle to monetize apps profitably. Monetizing apps is done in two ways: a) selling advertising space within a free version of the app, and b) selling a paid version, termed freemium or in-app purchase strategy. In this paper, we present a framework for monetization...
Article
Despite the growth of online retail, the majority of products are still sold offline, and the “touch-and-feel” aspect of physically examining a product before purchase remains important to many consumers. In this paper, we demonstrate that large discrepancies can exist between how consumers evaluate products when examining them “live” versus based...
Article
Full-text available
Whether to legally protect original fashion designs against piracy is an ongoing debate among legislators, industry groups, and legal academic circles, which has gained little exposure in the marketing literature. We combine data on the growth of fashion designs, price markups, and industry statistics to develop a formal analysis of the essential q...
Article
Full-text available
Research on growth of innovations introduced to the market has gradually shifted its focus from aggregate-level diffusion to exploring how growth is influenced by a given social network structure's characteristics. In this paper, we critically review this branch of literature. We argue that the growth of an innovation in a social network is shaped...
Article
Service providers, such as cell phone carriers, often offer three-part tariff plans that consist of three levers: A fixed fee, an allowance of free units, and a price per unit above the allowance. In previous studies the optimal three-part tariff contract was characterized using the standard first-order conditions approach. Because this optimizatio...
Article
Most new-product frameworks in marketing and economics, as well as lay beliefs and practices, hold that the larger the stock of adoption of a new product, the greater the likelihood of additional adoption. Less is known about the underlying mechanisms as well as the conditions under which this central assumption holds. We use a series of field and...
Article
The role of opinion leaders in the diffusion of innovation has recently come under scrutiny: On the one hand, their central role in accelerating diffusion has been recognized in industry, academia, and the popular media. On the other hand, it has been argued that opinion leaders do not create contagion processes that differ significantly from those...
Chapter
This chapter begins by establishing that each first-time adoption of an innovation can be thought of as the start of a customer-firm relationship in which the adopter generates a stream of profits for the firm. The financial value of this profit stream is termed the customer’s lifetime value. Four main elements drive customer lifetime value: the pe...
Chapter
This chapter identifies key patterns in the way consumers adopt new products and services over time, and integrates these patterns to formulate the basic diffusion model for an innovation (also known as the Bass Model). Five factors—relative advantage, complexity, trialability, observability, and compatibility—are used to explain differences in the...
Chapter
This chapter considers the book’s main framework in a global context. It establishes that innovation equity assessments typically differ across countries, even after controlling for population sizes, because diffusion and customer lifetime value parameters are generally not the same in each of them. An innovation’s diffusion scale and speed, for ex...
Chapter
This concluding chapter serves as a review of the material covered throughout the book and addresses issues often encountered when implementing the various concepts in practice and in different business settings. The presentation takes on a “Frequently Answered Questions” (FAQ) format, i.e., it outlines each issue as a question readers may be wonde...
Chapter
This chapter explores the diffusion saddle phenomenon, whereby an innovation’s unit sales exhibit an early peak followed by a decline and a subsequent second sales peak. The average duration of the dip in sales is four years and the maximal depth of the decline is over 15 percent. The saddle pattern can be attributed to the existence of multiple ad...
Chapter
This chapter focuses on the implications of competition for innovation equity. When multiple firms introduce innovations in the same space several customer dynamics emerge. First, as new customers continue entering the category some past adopters may switch brands, a process called churn, and others may leave the category altogether, a process call...
Chapter
This chapter explains how marketing efforts, such as price cuts and advertising, can affect innovation equity by impacting its various building blocks: the long-run market potential, the speed of diffusion, and the customer lifetime value. Moreover, marketing effects on customer lifetime value can occur at any phase: acquisition (adding new custome...
Chapter
This chapter examines successive innovation generations in a category. It shows that a new generation may diffuse faster than its predecessors, in terms of when absolute adoption numbers are achieved, due primarily to an increase in the long-run market potential rather than a drastic change in adoption forces. Looking at penetration levels (percent...
Chapter
This chapter extends the treatment of how multiple segments adopt innovations, and connects diffusion modeling and marketing strategy with the chasm phenomenon. A chasm forms when mainstream customers effectively have no individual force to drive adoption of the innovation in question and are not open to social influence from the early market. Cons...
Article
Most preference-elicitation methods that are used to design products and predict market shares (such as conjoint analysis) ask respondents to evaluate product descriptions, mostly online. However, many of these products are then sold offline. In this paper we ask how well preference-elicitation studies conducted online perform when predicting offli...
Article
Service providers, such as cell phone carriers, often offer three-part tariff plans that consist of three levers: A fixed fee, an allowance of free units, and a price per unit above the allowance. In previous studies the optimal three-part tariff contract was characterized using the standard first-order conditions approach. Because this optimizatio...
Article
Most if not all new product frameworks in marketing and economics as well as lay beliefs and practices hold that the larger the stock of adoption of a new product, the greater the likelihood of additional adoption. Less is known about the underlying mechanisms as well as the conditions under which this central assumption holds. Using both controlle...
Article
In this article, we propose a new product positioning method based on the neural network methodology of a self‐organizing map. The method incorporates the concept of rings of influence, where a firm evaluates individual consumers and decides on the intensity to pursue a consumer, based on the probability that this consumer will purchase a competing...
Article
In word-of-mouth seeding programs, customer word of mouth can generate value through market expansion; in other words, it can gain customers who would not otherwise have bought the product. Alternatively, word of mouth can generate value by accelerating the purchases of customers who would have purchase anyway. This article presents the first inves...
Article
Les opportunités que les médias sociaux offrent aux consommateurs, aux entreprises et aux chercheurs en marketing sont quasiment infinies, comme le montrent, entre autres, les articles de ce numéro spécial. Cependant, nous ne devrions pas oublier que ces opportunités, tout aussi prometteuses qu'elles puissent sembler, ne surviennent pas toutes seul...
Article
Diffusion processes of new products and services have become increasingly complex and multifaceted in recent years. Consumers today are exposed to a wide range of influences that include word-of-mouth communications, network externalities, and social signals. Diffusion modeling, the research field in marketing that seeks to understand the spread of...
Article
The academic literature on the growth acceleration of new products presents a paradox. On the one hand, the diffusion literature concludes that more recently introduced products show faster diffusion than older ones. On the other hand, technology generation literature argues that growth rate, at least as measured by diffusion parameters, remains co...
Article
Diffusion of new products is an important problem in marketing research. One of the most prominent models in diffusion theory is the Bass Diffusion model that describes the number of adopters of new products as a differential equation. More recently, diffusion of products has been studied using agent-based modeling and in particular, stochastic cel...
Article
Full-text available
The interest in social networks among marketing scholars and practitioners has sharply increased in the last decade. One social network of which network scholars increasingly recognize the unique value is the academic collaboration (coauthor) network. We offer a comprehensive database of the collaboration network among marketing scholars over the l...
Article
Conventional wisdom suggests that network effects should drive faster market growth due to the bandwagon effect. However, as we show, network externalities may also create an initial slowdown effect on growth because potential customers wait for early adopters, who provide them with more utility, before they adopt. In this study, we explore the fin...
Article
den Bulte for graciously supplying us with data, their support, and helpful advice throughout this project. Pete Fader, David Godes, and Raghuram Iyengar contributed additional comments and suggestions.
Article
Consumer-generated communication processes have drawn increasing attention of marketers and researchers. However, an underresearched issue is that interpersonal communications are not always brand specific. Thus, a person can adopt a brand either as a result of communication with adopters of that brand (within-brand influence) or as a result of an...
Article
Consumer-generated communication processes have drawn increasing attention of marketers and researchers. However, an underresearched issue is that interpersonal communications are not always brand specific. Thus, a person can adopt a brand either as a result of communication with adopters of that brand (within-brand influence) or as a result of an...
Article
Many of the products introduced during the past two decades have been services rather than goods. An important influence on the growth and long-term profits of these services is customer attrition, which can occur at the category level (disadoption) or between firms (churn). However, the literature has rarely modeled how services penetrate a market...
Article
Full-text available
A well-accepted idea among new-products marketing practitioners in the last decade is that the market for new products should be viewed as composed of “early” and “mainstream” markets with a “chasm” in between them. A fundamental premise of such an approach is that there is a communication break, at least to some degree, between the consumers in th...
Article
Full-text available
easyJet, one of Europe’s most successful low-cost short-haul airlines, has a simple pricing structure. For a given flight, all prices are quoted one-way, a single price prevails at any point, and, in general, prices are low early on and increase as the departure date approaches. We observe from these policies and from the empirical section of this...
Article
Full-text available
We explore the effects of individual-and network-level negative word-of-mouth on a firm's profits using an agent-based model, specifically an extended small-world analysis. We include both permanent strong ties within the social network, and changing, often random, weak ties with other networks. The effect of negative word-of-mouth on the Net Prese...
Article
Full-text available
In this article, we showed the results of our study on the saddle phenomenon by an analytical model of two markets―early and mainstream―and the relationships between them. This model creates a growth pattern wherein a saddle can be discerned. We tested this model empirically on seven product categories, and in only one (cell phones) was a clear sad...
Article
Full-text available
The idea of a dual-market structure in the early stages of a product's life cycle has become one of the most widely accepted ideas among new product marketing practitioners in the past decade. Concepts such as “Early Market/Main Market” and “Visionaries/Pragmatists” have entered the lexicon of high-tech executives to express the notion that the mar...
Article
Numerous new products introduced to the market during the last few decades are services. An important characteristic of services that has a considerable influence on service growth is customer attrition. Attrition can occur at the category level (disadoption), or between firms (defection). Attrition is a major concern for service providers, and has...
Article
Firms introducing new products into multi-markets often face the dilemma of how to dynamically allocate their marketing resources during penetration. The aim of this study is to examine which responsive allocation strategy is more effective for these firms. We explore three major resource allocation strategies: uniform strategy, in which the firm d...
Article
Full-text available
One of the main problems associated with early-period assessment of new product success is the lack of sufficient sales data to enable reliable predictions. We show that managers can use spatial dimension of sales data to obtain a predictive assessment of the success of a new product shortly after launch time. Based on diffusion theory, we expect t...
Article
Full-text available
Using data on a large number of innovative products in the consumer electronics industry, the authors find that between one-third and one-half of the sales cases involved the following pattern: an initial peak, then a trough of sufficient depth and duration to exclude random fluctuations, and eventually sales levels that exceeded the initial peak....
Conference Paper
This paper presents a methodology that identifies the position of a new product in the attribute space. The methodology uses principles from Kohonen’s self-organizing feature map. The algorithm presented is robust and can be used for a number of objective functions commonly used in the product positioning problem. The method can also be used in com...
Article
Full-text available
Though word-of-mouth (w-o-m) communications is a pervasive and intriguing phenomenon, little is known on its underlying process of personal communications. Moreover as marketers are getting more interested in harnessing the power of w-o-m, for e-business and other net related activities, the effects of the different communications types on macro le...
Article
We investigate the dynamic aspects of a co-marketing alliance and offer guidelines to establish profitable and self-sustaining alliances. Our specific objective is to assess the attractiveness of forming a medium-term exclusive alliance between two brands or their manufacturers to produce a series of co-branded products jointly against the alternat...
Article
One expectation of the U.S. Federal Communications Commission (FCC) in the early stages of the cellular communications industry was that the presence of two licensees in each market would ensure competition, and thereby result in declining prices over time for both cellular phones (handsets) and phonecalls. However, industry observers have noted re...
Article
Despite the relatively small number of Innovators in a potential market for a new product, they are often the main target of a firm's marketing efforts. Because the Innovators tend to influence the remaining potential adopters, that is, the Majority, firms tend to allocate more marketing efforts and resources toward the Innovators than toward the M...
Article
Despite the relatively small number of Innovators in a potential market for a new product, they are often the main target of a firm's marketing efforts. Because the Innovators tend to influence the remaining potential adopters, that is, the Majority, firms tend to allocate more marketing efforts and resources toward the Innovators than toward the M...
Article
This article argues that in a competitive software market, in the presence of differential piracy and brand switching among the various brands within a software product category (e.g., spreadsheets), there may be no relationship between market estimates based on unit sales and the user base of a software brand (e.g., Lotus 1-2-3). Hence, marketing...
Article
Full-text available
One of the major ways that manufacturers decrease the uncertainty that is involved in making a choice between competing brands of experience goods is through demonstrations of their new products. The authors investigate the issue of the length of a demonstration and, in particular, provide answers to the following three questions: What is the optim...
Article
Full-text available
One of the major ways that manufacturers decrease the uncertainty that is involved in making a choice between competing brands of experience goods is through demonstrations of their new products. The authors investigate the issue of the length of a demonstration and, in particular, provide answers to the following three questions: What is the optim...
Article
Based on the behavioral assumptions of diffusion theory, this article proposes an extension of the Bass diffusion model that simultaneously captures the substitution pattern for each successive generation of a durable technological innovation, and the diffusion pattern of the base technology. Normative guidelines based on the model suggest that a f...
Article
The diffusion model developed by Bass (Bass, F. M. 1969. A new product growth model for consumer durables. (January) 215–227.) constitutes an empirical generalization. It represents a pattern or regularity that has been shown to repeat over many new products and services in many countries and over a variety circumstances. Numerous and various appli...
Article
Full-text available
How should a multinational firm introduce a new product into its global markets? Should it first attack and conquer the domestic market before moving into overseas markets or should it plan for a global attack by launching the product in all its global markets simultaneously? Using innovation diffusion models in a monopoly and a competitive game th...
Article
We provide empirical support for the hypothesis that the lower the opportunity costs of individuals, the more likely they are to undertake entrepreneurial activity. This prediction emerged from earlier theoretical work in which we modeled the decision of individuals to develop new ventures on their own, seek the backing of a venture capitalist, or...
Article
Free samples are an effective means for introducing and promoting a new product. However, product sampling is also expensive. As a result, careful consideration must be given to the question of how many samples should be distributed. To encourage product adoption in any target market, a company needs to determine the “right” amount of sampling. In...
Article
The adverse selection problem that is created because of asymmetry of information about entrepreneurs' attributes and abilities in turning ideas into viable businesses makes it difficult for venture capitalists or corporate executives to identify would-be successful entrepreneurs in advance. To mitigate this, and the related moral-hazard problem, w...
Article
Software piracy by users has been identified as the worst problem facing the software industry today. Software piracy permits the shadow diffusion of a software parallel to its legal diffusion in the marketplace, increasing its user base over time. Because of this software shadow diffusion, a software firm loses potential profits, access to a signi...