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Theory of learning curves market research models message penetration

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Many companies have built successful marketing and production strategies around the learning curve—the simple but powerful concept that product costs decline systematically by a common percentage each time that volume doubles. However, other results that are not planned, foreseen, or desired may grow out of such a market penetration cost reduction progression. Reduced flexibility, a loss of innovative capability, and higher overhead may accompany efforts to cut costs. A manager failing to consider the possible outcome of following a cost-minimizing strategy may find himself with few competitive options once he reaches the point where decelerating volume expansion prevents him from obtaining further significant cost reduction. But if he can identify the likely consequences in advance, he can either anticipate them in his plans or choose an alternative strategy.
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Diffusion of innovations

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Limits of the Learning Curve

Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread. Everett Rogers , a professor of communication studies , popularized the theory in his book Diffusion of Innovations ; the book was first published in , and is now in its fifth edition The origins of the diffusion of innovations theory are varied and span multiple disciplines. Rogers proposes that four main elements influence the spread of a new idea: the innovation itself, communication channels , time, and a social system. This process relies heavily on human capital. The innovation must be widely adopted in order to self-sustain.
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Limits of the Learning Curve

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