In this paper we present an agent-based simulation (ABS) model for predicting the demand evolution of a continuously innovated product in a competitive market. With the model, the impact of price strategy and market share outcome of industry players can be predicted. The model works with consumer (agent) profiles which represent the attitudes towards innovated mass consumer products such as those of ICT and electronics and their response to marketing campaigns by massive media or by mouth-to-mouth influence. The agent is subject to environmental variables such as dynamic pricing, marketing signals, and quality rumor perception and he/she decides by means of a multicriteria mechanism and activation levels whether to purchase the product or not at a given instant. We test the model by experimenting with three hypothetical cases. The prototype implemented by an ABS software yields logical and useful results according to predefined consumer and company profiles, showing that it is feasible to predict demand behavior of incrementally innovated technology products.