The IRMA Community
Newsletters
Research IRM
Click a keyword to search titles using our InfoSci-OnDemand powered search:
|
Modelling of Consumer Goods Markets: An Agent-Based Computational Approach
Abstract
An agent-based behavioral model incorporating utility-based rational choice enhanced with psychological drivers is presented to study a typical consumer market. The psychological drivers incorporate purchase strategies of loyalty and change-of-pace, using agent-specific memory of past purchases. Attribute-specific preferences and prices drive the utility-based choice function. Transactions data is used to calibrate and test the model. Results indicate that prediction accuracy at both macro and micro levels can be significantly improved with the incorporation of purchase strategies. Moreover, increased agent memory does not improve predictions in the model beyond a threshold, indicating that consumer memory of past shopping instances is finite and recent purchase history is more relevant to current decision making than the distant past. The chapter illustrates the use of agent-based simulations to model changes or interventions in the market, such as new product introductions, for which no history exists.
Related Content
Astha Singh, Vedika Bhargaw, Zidan Kachhi.
© 2024.
22 pages.
|
Meziyet Uyanik.
© 2024.
28 pages.
|
Ondřej Roubal.
© 2024.
35 pages.
|
Monaliz Amirkhanpour.
© 2024.
27 pages.
|
Aylin Atasoy, Murat Basal.
© 2024.
26 pages.
|
Cansu Gökmen Köksal.
© 2024.
35 pages.
|
Fatih Sahin.
© 2024.
33 pages.
|
|
|