Simulation of Consumers Behavior Facing Discounts and Promotions

Jarod Vanderlynden, Jarod Vanderlynden, Philippe Mathieu, Romain Warlop

2024

Abstract

Discounts in stores are a powerful tools companies can use to create brand loyalty for products or increase sales during a short period of time. However, discounts are costly campaigns that result in complex effects on consumers, yielding unpredictable results and returns on investment. To maintain competitiveness, stores and brands have to use those campaigns and risk substantial investments. To gain a better understanding of the impact of discounts on consumer behavior, we argue that it is necessary to complement aggregated solutions with more granular, individually-centered approaches, such as agent-based modeling. In our study, we propose a new model based on social and psychological findings capable of replicating important and well-known emergent phenomena. This simulation model permits the study of behavioral responses to discounts and price strategy and can help companies to gain a clearer understanding of the effects of their different campaigns.

Paper Citation

in Harvard Style

Vanderlynden J., Mathieu P. and Warlop R. (2024). Simulation of Consumers Behavior Facing Discounts and Promotions. In Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 3: ICAART; ISBN 978-989-758-680-4, SciTePress, pages 260-267. DOI: 10.5220/0012320300003636

in Bibtex Style

@conference{icaart24,
author={Jarod Vanderlynden and Philippe Mathieu and Romain Warlop},
title={Simulation of Consumers Behavior Facing Discounts and Promotions},
booktitle={Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 3: ICAART},
year={2024},
pages={260-267},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012320300003636},
isbn={978-989-758-680-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 3: ICAART
TI - Simulation of Consumers Behavior Facing Discounts and Promotions
SN - 978-989-758-680-4
AU - Vanderlynden J.
AU - Mathieu P.
AU - Warlop R.
PY - 2024
SP - 260
EP - 267
DO - 10.5220/0012320300003636
PB - SciTePress