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An agent-based simulation of customer multi-channel choice behavior

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  • Lea Sonderegger-Wakolbinger
  • Christian Stummer

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Abstract

Experimenting with multi-channel operations in reality is both costly and risky, because it can severely affect a firm’s revenues, profitability, customer churn, and other customer metrics. In this paper, we introduce an agent-based simulation approach as a means for exploring and analyzing the impact of (combinations of) multi-channel activities on customer channel choices before having implemented them in practice. The simulation takes into account the heterogeneity of customers, social dynamics in their behavior, and the various phases of the purchasing process. To this end, customers are represented by agents whose phase-specific channel perceptions determine their channel choices. These perceptions may be altered by communication with other agents, first-hand experience of the channel, and/or marketing activities. The approach is illustrated through a sample application for which data from an international multi-channel retailer as well as from an empirical study among Austrian customers have been used. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Lea Sonderegger-Wakolbinger & Christian Stummer, 2015. "An agent-based simulation of customer multi-channel choice behavior," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 459-477, June.
  • Handle: RePEc:spr:cejnor:v:23:y:2015:i:2:p:459-477
    DOI: 10.1007/s10100-015-0388-5
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:ejores:v:269:y:2018:i:3:p:794-805 is not listed on IDEAS
    2. Herbert Dawid & Reinhold Decker & Thomas Hermann & Hermann Jahnke & Wilhelm Klat & Rolf König & Christian Stummer, 2017. "Management science in the era of smart consumer products: challenges and research perspectives," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(1), pages 203-230, March.
    3. Jürgen Fleiß & Stefan Palan, 2015. "Collaborative decision systems in economics and in complex societal and environmental applications," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 279-282, June.
    4. repec:spr:cejnor:v:26:y:2018:i:2:d:10.1007_s10100-017-0492-9 is not listed on IDEAS

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