TY - JOUR
T1 - Amplification of the products' competing power from heuristics
AU - Koyama, Yuhsuke
PY - 1999
Y1 - 1999
N2 - In this paper, we use a computer-simulation method and examine the hypothesis that consumers' purchasing heuristics amplifies the competing power of the low-involvement products. Under these two assumptions: (1) consumers use not optimizing but satisfycing and (2) shop managers follows POS-data and controls the exposing rate of products so that products with low competing power are immediately eliminated from the shop, the simulation results say these four results: (1) products with low competing power are immediately eliminated from the shop, (2)in case of highly competable products, there is a good circle that consumers' easily find the product which causes high sales which causes consumers' much easier finding and so on,(3)it is difficult to know in advance which product can survive, (4) regardless of how severe competition among products, consumers can enjoy the stable consumer surplus from purchasing products.
AB - In this paper, we use a computer-simulation method and examine the hypothesis that consumers' purchasing heuristics amplifies the competing power of the low-involvement products. Under these two assumptions: (1) consumers use not optimizing but satisfycing and (2) shop managers follows POS-data and controls the exposing rate of products so that products with low competing power are immediately eliminated from the shop, the simulation results say these four results: (1) products with low competing power are immediately eliminated from the shop, (2)in case of highly competable products, there is a good circle that consumers' easily find the product which causes high sales which causes consumers' much easier finding and so on,(3)it is difficult to know in advance which product can survive, (4) regardless of how severe competition among products, consumers can enjoy the stable consumer surplus from purchasing products.
KW - Bounded rationality
KW - Heuristic
KW - Increasing returns
KW - Low-involvement products
KW - Simulation
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M3 - Article
AN - SCOPUS:0347666115
SN - 0913-1442
VL - 14
SP - 30
EP - 31
JO - Sociological Theory and Methods
JF - Sociological Theory and Methods
IS - 2
ER -