We investigate how consumer word of mouth (WOM) develops over time and in turn influences new product adoption. We develop a dynamic aggregate-level model of WOM development and new product diffusion that explicitly captures consumers’ learning of product quality from both marketing...

This research uses Procter & Gamble's value pricing initiative as a context for testing whether actual competitor and retailer response to a major policy change can be predicted using a game-theoretic model. We first estimate demand functions for P&G and competitor brands from the period before...