Consumer Behavior

Routing Summary

This topic covers agent-based models of consumer behavior from two papers. Contains 2 sub-topics and 8 total notes.

Sub-topics

  • Karakaya Model — COVERS: 4-component utility function (quality, promotion, WOM, price), logit purchase decisions, marketing strategy experiments in a monopolistic market
  • CUBES Model — COVERS: CUBES simulator architecture, five behavioral attitudes (mistrust, opportunism, conditioning, innovativeness, imitation), behavioral primitives with threshold activation, imitation and conditioning social processes

Cross-Cutting Concepts

Concepts that span both models:

  • WOM influence: Karakaya models WOM as a utility component (); CUBES models it through the imitation process with perception fields. Both find WOM critical for realistic dynamics.
  • Opinion leaders: Karakaya treats them as exogenously assigned (M=200 with 3x influence multiplier); CUBES treats them as emergent from network position.
  • Heterogeneity: Karakaya uses sensitivity parameters (, , , ); CUBES uses behavioral attitudes and socio-demographic profiles.
  • Bounded rationality: Karakaya uses logit noise; CUBES uses threshold filtering.

Sources