Research On Agent Model Of Price Promotion On Brand Asset Formation

The value of the brand is becoming more and more important in the current market environment.For companies in the market,the development of appropriate brand asset management plans and strategies has attracted the attention of company managers.Brand equity has become a must-have for all companies to win.Enterprises often use price promotions to obtain consumers in the fierce market competition environment.For example,slogans such as "50% off","50% off","150% over 300" are very easy to see.Only last year's "Tmall Double 11 Global Carnival",the total turnover on that day of the platform reached 268.4 billion yuan.On November 11,the zero point passed 1 minute and 36 seconds,and the total turnover of Tmall Double 11 has already exceeded 10 billion yuan(source: 00:01,November 12,2019 source:Securities Times Network).It can be seen that the "Double 11 Festival" can prompt customers or users to have very full sales in a short period of time.But at the same time,we must realize that improper use of price promotion tools will indeed have a bad impact on the enterprise.For example,reducing the quality perception of consumers.Frequent use of price promotion tools may also cause consumers to strongly question the pricing of brand products.It may damage the value rights and interests of the company's brand.Therefore,exploration in this field is very critical.The impact of price promotion on the accumulation of consumer-centric brand equity is not only related to price promotion itself,but also affected by environmental factors such as competitive response.Therefore,this article starts with an analysis at the micro level,observes the individual heterogeneity of consumers and the difference in the impact on brand equity.Based on summing up past experience,the current domestic and foreign research status of price promotion,competitive response and brand equity is integrated.Based on the modeling method of Agent,build a simulation model of consumers affected by price promotion,and do repeated simulation experiments on the Repast platform,which is intended to explore how the interaction between various stakeholders promotes individual consumer purchase intentions and perceived quality.Dynamic evolution and evaluation of the increase or loss of corporate brand equity in the context of different price promotions.By sorting out the simulation data,the mostimportant conclusion of this paper is to verify the effect of the price promotion amplitude,frequency and duration on brand equity,and the different reactions of competing brands have no less than the adjustment effect on brand equity.The direct effect of the three factors of price promotion on brand equity.Secondly,this study also found that a reasonable price promotion range will not reduce brand equity.Furthermore,when the brand makes a low discount,the adjustment effect of the competitive response is relatively weak;when the price range of the promotional brand is close to the optimal value,the fierce competition reaction will promote the promotion of the brand equity of the promotional brand.The exploration results of the article are helpful to the company ' s brand managers,reminding managers to use differentiated discounts,occurrences and cycle lengths according to the differences in market scenarios,so that audiences of various companies can recognize brand products and can Give full play to discounts and price reductions to increase the brand equity of enterprises.Under normal circumstances,it is recommended that companies choose a price promotion rate close to 50%,because the discount is too deep,causing customers or users to feel bad.When competitors are already doing price promotion activities,it is not recommended that companies follow,let alone malicious competition with higher price promotion intensity,which has an adverse effect on the company's own brand equity.From the perspective of the company's management of brand equity,companies need to understand how to properly use the "double-edged sword" of price promotion.According to the development trend in the industry and the unique attributes of the brand,determine the appropriate price promotion rate,frequency and sustainability The range of time.To create and maintain brand equity,companies should consider their own specific circumstances,integrate the marketing activities involved,and rationally allocate the company's internal resources according to the content of the marketing mix,so that Chinese companies not only compete in the domestic market,but also globally Brand competition in the market is in a good position.