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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Autores principales:	Altszyler, E., Berbeglia, F., Berbeglia, G., Van Hentenryck, P.
Formato:	JOUR
Materias:	advertising behavior consumer human marketing Monte Carlo method algorithm commercial phenomena consumer attitude procedures social behavior theoretical model Algorithms Commerce Consumer Behavior Humans Marketing Models, Theoretical Monte Carlo Method Social Behavior
Acceso en línea:	http://hdl.handle.net/20.500.12110/paper_19326203_v12_n7_p_Altszyler
Aporte de:	Biblioteca Digital - Facultad de Ciencias Exactas y Naturales (UBA) de Universidad de Buenos Aires

id	todo:paper_19326203_v12_n7_p_Altszyler
record_format	dspace
spelling	todo:paper_19326203_v12_n7_p_Altszyler2023-10-03T16:34:50Z Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality Altszyler, E. Berbeglia, F. Berbeglia, G. Van Hentenryck, P. 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. JOUR info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by/2.5/ar 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 Altszyler, E. Berbeglia, F. Berbeglia, G. Van Hentenryck, P. 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.
format	JOUR
author	Altszyler, E. Berbeglia, F. Berbeglia, G. Van Hentenryck, P.
author_facet	Altszyler, E. Berbeglia, F. Berbeglia, G. Van Hentenryck, P.
author_sort	Altszyler, E.
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
url	http://hdl.handle.net/20.500.12110/paper_19326203_v12_n7_p_Altszyler
work_keys_str_mv	AT altszylere transientdynamicsintrialoffermarketswithsocialinfluencetradeoffsbetweenappealandquality AT berbegliaf transientdynamicsintrialoffermarketswithsocialinfluencetradeoffsbetweenappealandquality AT berbegliag transientdynamicsintrialoffermarketswithsocialinfluencetradeoffsbetweenappealandquality AT vanhentenryckp transientdynamicsintrialoffermarketswithsocialinfluencetradeoffsbetweenappealandquality
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Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality

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