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On Brand Diffusion Simulation Based on Computational Experiment

Author: ZhangXiaoChun
Tutor: ChenGuoHua
School: Nanjing University
Course: Management Science and Engineering
Keywords: Consumer behavior, decision-making Computational experiment Brand proliferation
CLC: F273.2
Type: Master's thesis
Year: 2011
Downloads: 68
Quote: 0
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Abstract

With the intensification of market competition, global economic integration process, competition from price competition, quality competition steering brand competition. Brand to an invincible position in the competition would have to obtain consumer awareness and adoption. How brands can more effectively for consumer awareness and ultimately achieve successful diffusion? This requires that we delve into the consumer brand choice behavior as well as to grasp the law of brand proliferation, and on this basis to develop the brand marketing management strategy. Brand proliferation is a complex system, brand proliferation study using qualitative analysis and quantitative model analysis methods, these methods ignore the main body of heterogeneity, dynamic autonomy in dealing with brand diffusion system , therefore there are obvious limitations, this paper based on the the Computational Experiments brand proliferation process, not only to overcome the above defects, and can be found the system macro brand diffusion model behind micro endogenous behavior depth kinetic mechanism the micro level of individual consumers brand choice behavior determines the macroscopic evolution of the brand diffusion system. The paper first constructed a system posed by the environment, consumers, brand marketing manager, and the diffusion mechanism analysis, the calculated experimental model is constructed on the basis of the analysis of the system mechanism. In the the calculated experimental model, according to Rogers classification of consumers, the text will be divided into three categories: innovation users, early adopters, late adopters consumers by innovation perceived Type. Each consumer type has different characteristics, to determine its price preferences, quality preferences the promotional preference sensitivity of the distribution function as well as the influence of neighbors, on this basis, consumers with different price, quality, promotion the strength of the brand to interact, and to calculate the effectiveness of the adoption of each brand, and then make a final adoption decision. According to the different types of brand competition, this paper to simulate the diffusion of monopoly brand, oligarchy brand and competing brands. First, monopoly brand of analog draw a single brand proliferation \improve their consumer brands in the decision-making behavior of herding and bait effect; Finally, the simulation of diffusion of competing brands research found that: 1) the first-brand has the first mover advantage, but after the entry brand earlier into the brand based on feature can reduce market access barriers, and even beyond the first into the brand; 2) past simple study different brand level or product category level of diffusion, this paper will constitute a product category various brands mutually superimposed to form a whole product category of the diffusion mode, so as to connect the brand level and product category level for Nonproliferation Studies. Simulation results for each experiment, the paper also analyzes its causes and management revelation, brand marketing manager for reference.

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