• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.05a
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• pp.1116-1123
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• 2006

The methodological framework proposed in this paper addresses the strength of the applied Bass model by Mahajan and Muller(1996) that it reflects the substitution of next generations among products. Also this paper is to estimate and analyze the forecast of demand for products that do not exist in the marketplace. We forecast the sales of digital TV using estimated market share and data obtained by the face to face Interview. In this research, we use two methods to analyze the demand for Digital TV that are the forecasting the Demand for the Substitution and binary logit analysis. The logit analysis is to estimate the decisive factor of purchasing digital TV. The decisive factors are composed of purchasing plan, region, gender, TV price, contents, coverage, income, age, and TV program. We apply the model to South Korea's market for digital TV. The results show that (1) Income, region and TV price play a prominent part which is the decisive factor of purchasing digital TV. (2) We forecaste the demand of digital TV that will be demanded about 18 millions TVs in 2015