Application of Diffusion Theory in the Development of E-Commerce

This paper demonstrates the diffusion process of e-commerce with BASS innovation diffusion model. It estimates the parameters of the model and establishes the online consumer diffusion model and predicts the cumulative number of online consumers in the next few years based on the statistic data of online buyers. At the same time, it also analyzes all the factors affecting the increase of online buyers and verifies the result of the prediction from the model. Finally, the paper discusses the model with the results.