The Case Study of a Diffusion Theory Model of Adoption and Substitution for Successive Generations of Mobile Internet

Norton model is a diffusion model to use for a substitution for successive generations of a product. There are many hypothesizes on this model, one of them is that only the next generation product can substitute this generation of product, and the first several generations cannot affect the diffusion of this generation product. In fact, successive generations of a product influence each other when they diffuse in the same market, so this paper takes the factors of the influence of successive generations of a product into account Norton model, and defines the substitution influence coefficients, then constructs the extended Norton model. This paper takes the adoption and substitution for successive generations of the mobile Internet in Taiwan as an example for the application of the extended Norton model. The results is satisfied after comparing with Norton model. In the end, the paper draws a conclusion that the extended Norton model is reliable, and the fitness and the forecasting is better than that of Norton model.