Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality
We study a trial-offer market where consumers may purchase one of two competing products. Consumer preferences are affected by the products quality, their appeal, and their popularity. While the asymptotic convergence or stationary states of these, and related dynamical systems, has been vastly stud...
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2017
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| Acceso en línea: | https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_19326203_v12_n7_p_Altszyler http://hdl.handle.net/20.500.12110/paper_19326203_v12_n7_p_Altszyler |
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paper:paper_19326203_v12_n7_p_Altszyler2023-06-08T16:30:41Z Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality advertising behavior consumer human marketing Monte Carlo method algorithm commercial phenomena consumer attitude marketing procedures social behavior theoretical model Algorithms Commerce Consumer Behavior Humans Marketing Models, Theoretical Monte Carlo Method Social Behavior We study a trial-offer market where consumers may purchase one of two competing products. Consumer preferences are affected by the products quality, their appeal, and their popularity. While the asymptotic convergence or stationary states of these, and related dynamical systems, has been vastly studied, the literature regarding the transitory dynamics remains surprisingly sparse. To fill this gap, we derive a system of Ordinary Differential Equations, which is solved exactly to gain insight into the roles played by product qualities and appeals in the market behavior. We observe a logarithmic tradeoff between quality and appeal for medium and long-term marketing strategies: The expected market shares remain constant if a decrease in quality is followed by an exponential increase in the product appeal. However, for short time horizons, the trade-off is linear. Finally, we study the variability of the dynamics through Monte Carlo simulations and discover that low appeals may result in high levels of variability. The model results suggest effective marketing strategies for short and long time horizons and emphasize the significance of advertising early in the market life to increase sales and predictability. © 2017 Altszyler et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. 2017 https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_19326203_v12_n7_p_Altszyler http://hdl.handle.net/20.500.12110/paper_19326203_v12_n7_p_Altszyler |
| institution |
Universidad de Buenos Aires |
| institution_str |
I-28 |
| repository_str |
R-134 |
| collection |
Biblioteca Digital - Facultad de Ciencias Exactas y Naturales (UBA) |
| topic |
advertising behavior consumer human marketing Monte Carlo method algorithm commercial phenomena consumer attitude marketing procedures social behavior theoretical model Algorithms Commerce Consumer Behavior Humans Marketing Models, Theoretical Monte Carlo Method Social Behavior |
| spellingShingle |
advertising behavior consumer human marketing Monte Carlo method algorithm commercial phenomena consumer attitude marketing procedures social behavior theoretical model Algorithms Commerce Consumer Behavior Humans Marketing Models, Theoretical Monte Carlo Method Social Behavior Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality |
| topic_facet |
advertising behavior consumer human marketing Monte Carlo method algorithm commercial phenomena consumer attitude marketing procedures social behavior theoretical model Algorithms Commerce Consumer Behavior Humans Marketing Models, Theoretical Monte Carlo Method Social Behavior |
| description |
We study a trial-offer market where consumers may purchase one of two competing products. Consumer preferences are affected by the products quality, their appeal, and their popularity. While the asymptotic convergence or stationary states of these, and related dynamical systems, has been vastly studied, the literature regarding the transitory dynamics remains surprisingly sparse. To fill this gap, we derive a system of Ordinary Differential Equations, which is solved exactly to gain insight into the roles played by product qualities and appeals in the market behavior. We observe a logarithmic tradeoff between quality and appeal for medium and long-term marketing strategies: The expected market shares remain constant if a decrease in quality is followed by an exponential increase in the product appeal. However, for short time horizons, the trade-off is linear. Finally, we study the variability of the dynamics through Monte Carlo simulations and discover that low appeals may result in high levels of variability. The model results suggest effective marketing strategies for short and long time horizons and emphasize the significance of advertising early in the market life to increase sales and predictability. © 2017 Altszyler et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
| title |
Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality |
| title_short |
Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality |
| title_full |
Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality |
| title_fullStr |
Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality |
| title_full_unstemmed |
Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality |
| title_sort |
transient dynamics in trial-offer markets with social influence: trade-offs between appeal and quality |
| publishDate |
2017 |
| url |
https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_19326203_v12_n7_p_Altszyler http://hdl.handle.net/20.500.12110/paper_19326203_v12_n7_p_Altszyler |
| _version_ |
1768542711831330816 |