Modelling for Dynamic Growth of User Population of Products and Services

Recently, technological advances have made possible the measure of daily (even hourly) user(sales) growth of a product or service. Here, questions comes: how users grow and how the promotion influence the user growth? Here, we develop a model that can describe the growth of the user population of a newly launched product or service, which can answer this question. To develop this model, we consider a network of interacting individuals, whose actions or transitions are determined by the states (behaviour) of their neighbours as well as their own personal decisions. This model leads to a simple growth equation connecting the growth of user population with the total number of prospective users, and the effects of peer influence and personal choice. Several real-life datasets of a variety of products and services have been analyzed. Results suggest that they all follow the proposed growth equation. The numerical procedure for finding the model parameters thus ensure the relative effectiveness, market size and promotional efforts to be estimated from the available historical growth data.