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.

Ключевые слова: business agility, competition model, multi-agent modelling, customer behavior model

В книге

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.