An agent-based simulation approach for the new product diffusion of a novel biomass fuel

Abstract

Marketing activities support the market introduction of innovative goods or services by furthering their diffusion and, thus, their success. However, such activities are rather expensive. Managers must therefore decide which specific marketing activities to apply to which extent and/or to which target group at which point in time. In this paper, we introduce an agent-based simulation approach that supports decision-makers in these concerns. The practical applicability of our tool is illustrated by means of a case study of a novel, biomass-based fuel that will likely be introduced on the Austrian market within the next 5 years.

Keywords:

• agent-based simulation
• diffusion of innovation
• marketing
• biomass fuel

Acknowledgements

Financial support from the Austrian Science Fund (FWF) by grant No. P20136-G14 is gratefully acknowledged. Furthermore, we are indebted to Stefan Fürnsinn for supporting this work with his expertise on BioFiT.