Application of an Agent-Based Simulation for a Definition of a Trade-Off Retail Price Promotion Strategy

Boris Ulitin; Eduard Babkin; Tatiana Babkina; Ulitin I.; Marina Zubova

doi:10.1007/978-3-031-45010-5_4

Publications

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Application of an Agent-Based Simulation for a Definition of a Trade-Off Retail Price Promotion Strategy

P. 42–52.

Boris Ulitin, Eduard Babkin, Tatiana Babkina, Ulitin I., Marina Zubova

A good pricing strategy is a key aspect of the company’s product success. In the context of business agility, the company's ability to quickly respond to changes in purchasing power and demand allows not only to take a leading position in the market, but also guarantee its development for years to come. However, the interactions between companies and customers add complexity to companies pricing decisions. On the other hand, there are agent-based approach, which can help to analyze pricing strategy, focusing on the interactions between companies and customers. Customer buying decisions are influenced by several customer preferences factors, while product prices depend on the company’s promotion strategy. The promotion is applied based on the frequency and depth of the price cut. The results show that the limited rationality and interactions of each agent drive the unique behavior of the system and affect companies profit and market share according to its pricing strategy.

Language: English

DOI

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Keywords: business agility competition model multi-agent modelling customer behavior model

In book

Model-Driven Organizational and Business Agility: Third International Workshop, MOBA 2023, Zaragoza, Spain, June 12–13, 2023, Revised Selected Papers

Issue 488: Model-Driven Organizational and Business Agility. MOBA 2023. , Switzerland: Springer, 2023.

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Babkin E., Ulitin B., Sergey V. Zykov, , in: 28th International Conference on Knowledge Based and Intelligent information and Engineering Systems (KES 2024)Vol. 246.: Elsevier, 2024. P. 870–879.

The tourism sector is quite complex from the standpoint of innovative technological development, since it is an example of a static competitive environment. Tourist sites are constant and the only thing that travel companies can influence is the image formed during the development of the tourist site. The article presents a developed and tested scheme for applied ...

Added: December 10, 2024

Can CRM Flexibility Raise Bank Efficiency?

Konovalov N., Gromoff A., Vladimirova A. et al., Global Journal of Flexible Systems Management 2020 Vol. 21 No. 2 P. 101–112

This paper summarizes practices of customer-driven services applied in the leading Russian bank to avoid the impact of financial sanctions (2014–2019). We show how economic sanctions and strict national policies triggered this bank to increase flexibility in customer care to attract more capital from their existing clients. The project comprised three stages: (1) to analyse ...

Added: February 27, 2024

Finding an optimal trade-off retail price promotion strategy using an agent-based simulation

Babkin E., Ulitin B., Zykov S. V., , in: 27th International Conference on Knowledge Based and Intelligent Information and Engineering Sytems (KES 2023)Issue 225.: Amsterdam: Elsevier, 2023. P. 932–940.

A good pricing strategy is a key factor in the success of a company's products. However, fierce competition and an ever-increasing number of market players are forcing companies to use automated methods and systems to respond in real time to changes in customer purchasing power and competitors' marketing techniques. More importantly, multi-agent modeling tools are ...

Added: December 28, 2023

Design of the optimal company development strategy using multi-agent modeling

Boris Ulitin, Eduard Babkin, Tatyana Babkina, , in: Proceedings of the 22nd CIAO! Doctoral Consortium, and Enterprise Engineering Working Conference Forum 2022 co-located with 12th Enterprise Engineering Working Conference (EEWC 2022).: CEUR-WS, 2022.

The study is aimed at determining the optimal strategy for the development of the company in terms of increasing the number of loyal customers using multi-agent modeling methods. The constructed model takes into account not only the main characteristics of the company's customers, but also a set of market tools available to the company at ...

Added: June 11, 2023

Sentence comprehension in heritage language: Isomorphism, word order, and language transfer

Chrabaszcz A., Onischik E., Dragoy O., Second Language Research 2022 Vol. 38 No. 4 P. 839–867

This study examines the role of cross-linguistic transfer versus general processing strategy in two groups of heritage speakers (n = 28 per group) with the same heritage language – Russian – and typologically different dominant languages: English and Estonian. A group of homeland Russian speakers (n = 36) is tested to provide baseline comparison. Within the framework ...

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Gromoff A., Bilinkis J., Kazantsev N., Global Journal of Flexible Systems Management 2017 Vol. 18 No. 1 P. 73–86

In 2016 a survey was conducted among Russian companies to discover the most common problems associated with flexibility of business process management. A gap between strict process formalization demands and unpredictable nature of many knowledge-intensive operations was identified. The article suggests an approach to facilitate process management via combined context-aware set of methods. Firstly, the ...

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Gromoff A., Kazantsev N., Bilinkis J., Procedia Computer Science 2016 Vol. 96 P. 1179–1185

Modern business driving requires agility in the reflecting changes of Service-oriented Enterprise Architecture (SoEA). For this purpose Subject-oriented Business Process Management (S-BPM) was used for facilitation of structured communication between process participants, process experts and resulted generation of collaborative business process. During such generation all necessary requirements for supporting resources (such as information, know-how, intellectual ...

Added: November 29, 2016