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Modelling of consumer goods markets: An agent-based computational approach

Glavin, S.E. and Sengupta, A. (2015) Modelling of consumer goods markets: An agent-based computational approach. In: Kaufmann, Hans-Ruediger, ed. Handbook of Research on Managing and Influencing Consumer Behavior. IGI Global, pp. 468-493. ISBN 978-1-4666-6547-7. (doi:10.4018/978-1-4666-6547-7.ch020) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
https://dx.doi.org/10.4018/978-1-4666-6547-7.ch020

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.

Item Type: Book section
DOI/Identification number: 10.4018/978-1-4666-6547-7.ch020
Subjects: H Social Sciences
H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School
Faculties > Social Sciences > Kent Business School > International Business and Strategy
Depositing User: Abhijit Sengupta
Date Deposited: 03 Jan 2019 11:34 UTC
Last Modified: 30 May 2019 08:42 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/71499 (The current URI for this page, for reference purposes)
Sengupta, A.: https://orcid.org/0000-0002-2450-0208
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