Color Television Market Penetration Dynamics

Abstract

A mathematical model describing the dynamic relationship between value, cost, and market penetration is formulated and tested against 1954 to 1971 color television, historical data. The model contains three parameters whose values are estimated from color television ownership data available as a function of time and consumer income. Although the basic model constitutes a deterministic theory, stochastic effects are considered heuristically and forecasts to 1980 are presented together with uncertainty bounds.