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This paper proposes an extension of the Bass model to analyze how conformance quality influences mixed word-of-mouth (WOM) in the diffusion of new products. It finds that an operations-marketing policy, which improves conformance quality, leads to higher cumulative sales and profits compared to a marketing-only policy, as it enhances both innovation and imitation effects. The study emphasizes the importance of balancing advertising efforts, pricing, and quality improvements to optimize product diffusion and

Author

studyallameh

Language

EN