On Brand Diffusion Simulation Based On Computational Experiment

As market competition intensifies, brand, instead of price and quality, has become the main factor of business competition. Only if gain the consumer awareness and adoption, the brand can win the success, so it make sense that make a depth analysis of the consumer brand choice behavior and the law of brand diffusion.Brand proliferation is a complex system, the traditional study of brand proliferation mainly focused on qualitative analysis and quantitative model analysis, but these methods has much limitations in modeling the complex system properties such as heterogeneity, dynamic, autonomy. The computational experiments can not only overcome the above deficiencies, but also investigate the evolution of diffusion system, lots of consumer behavior decision forming the macro-brand diffusion.This paper constructs a system which consisted of environment, consumers and brand, and then analysis the mechanism of the diffusion systems, which is the base of the corresponding experimental model.In the experimental model, based on the classification of the Rogers, we classify the consumers into three categories by type of innovation perception, which are innovation users, early adopters and late adopters. The different types of consumers determine their different preference for prices, quality, preference, promotion and the degree of sensitivity affected by their neighbors. On this basis, the consumers Interact with the brands with different prices, quality, promotion strength, thus the consumers calculate the adoption utility of each brand, and then make the final adoption decision.Monopoly, oligopoly and competing brands are simulated respectively in the paper. First, we obtained a "S" curve through the simulation of monopoly brand and the impact of parameters such as population density, the type of innovation perception on the diffusion is also examined; Second, the herding behavior and decoy effect of consumer decision are simulated in the oligopoly simulations; Finally, the simulation of competing brands diffusion examine the impact of the characteristics and entry time on the diffusion curves, and these brand-level diffusion curves aggregate to form the product-category level curve. The paper also analyzes the causes of each experiment result and the corresponding management inspiration.