Index: Karakaya Model

Karakaya Model

Routing Summary

This folder covers the ABM model from Karakaya et al. (2011) for analyzing marketing strategies with WOM in a monopolistic market. Contains 3 notes.

• Need the paper overview and key findings? → Karakaya et al 2011 - Overview
• Need the 4-component utility function equations? → Consumer Utility Function Components
• Need the logit purchase decision mechanism? → Logit Purchase Decision Model

Concept Map

Concept	Note	Type	Depends On	Key Result
Paper overview	Karakaya et al 2011 - Overview	overview	ABM Methodology and Principles	Quality dominates profitability under WOM
Utility function	Consumer Utility Function Components	concept	Heterogeneity in Agent Models	$U_i=U_{i1}+U_{i2}+U_{i3}+U_{i4}$
Purchase decision	Logit Purchase Decision Model	concept	Consumer Utility Function Components	Two-stage threshold + logit mechanism

Notes

• Karakaya et al 2011 - Overview — CONTAINS: research question, model components summary, experimental design, key findings on quality/price/promotion/WOM interactions
• Consumer Utility Function Components — CONTAINS: quality utility (Eq. 2-3), promotion utility with memory (Eq. 4), WOM utility (Eq. 5), price utility (Eq. 6), cost structure, parameter distributions
• Logit Purchase Decision Model — CONTAINS: logit function (Eq. 7), purchase rule (Eq. 8), threshold mechanism, logit properties, post-purchase behavior

Sources

• abm_consumer.pdf — Karakaya, Badur & Aytekin (2011)

See Also

• CUBES Model — alternative consumer behavior ABM
• Word of Mouth Mechanisms — cross-model WOM comparison