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Agent-based modeling of the word-of-mouth effect on promoting brand-name agricultural products

Author

Listed:
  • Qiuyi Huang

    (China Agricultural University)

  • Xiaoping Zheng

    (China Agricultural University)

  • Mengjie Zhang

    (China Agricultural University)

  • Xiaoshuan Zhang

    (China Agricultural University)

Abstract

Developing brand agricultural products (BAPs) has become a strategic choice for consumption upgrading and agricultural modernization in China. As a powerful marketing method, word-of-mouth (WOM) is rarely applied to BAPs. Based on the particularity of the agricultural environment and products in China, this paper focuses on the WOM behavior of consumers regarding BAPs. An agent-based simulation model was designed, including attitude and motivation functions. The former determines consumers’ attitudes toward BAPs, whereas the latter determines whether consumers will spread information by WOM. The model was validated, and some parameters were measured through a survey of Beijing consumers. Then, experiments were conducted to simulate the evolution process of consumers’ attitudes and willingness to engage in WOM and the influence of consumer heterogeneity on WOM spreading. Exploratory findings mainly show that (1) only when the strength of WOM marketing reaches a certain degree can it affect consumer attitudes toward BAPs, (2) in the early stage of WOM spreading, the greater the strength of economic stimulation to consumers, the greater the rate of WOM communication, and (3) the higher the education level of the target group of WOM marketing, the higher the efficiency of WOM communication.

Suggested Citation

  • Qiuyi Huang & Xiaoping Zheng & Mengjie Zhang & Xiaoshuan Zhang, 2022. "Agent-based modeling of the word-of-mouth effect on promoting brand-name agricultural products," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(3), pages 875-896, July.
    • Handle: RePEc:spr:jeicoo:v:17:y:2022:i:3:d:10.1007_s11403-022-00349-6
    DOI: 10.1007/s11403-022-00349-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Word-of-mouth (WOM); Brand agricultural products (BAPs); Agent-based model (ABM); Brand attitude; Willingness to spread;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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