1. Agent-Based Modeling and Simulation
of Consumer Behavior
Omid Roozmand
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
2. Introduction
Consumer Behavior
$6.88 million for a car plate!
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
3. Introduction (Human Behavior)
Cultural
Psychological
How Do Consumers Behave?
Social
Personal
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
4. Introduction
Consumer Behavior
• Why do consumers of different countries have different purchasing
behavior?
• Why do consumers of one country, or even of one family have different
purchasing behavior?
• How are consumers influenced by other consumers?
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
5. Introduction
ABM: Understanding and Predicting the consumer behavior and its Consequences
1- Understanding and Predicting the Individual consumer Behavior
2- Understanding and Predicting the Consumption Behavior of a Society
3- The Impact of the Behavior of Society on Environment
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
6. ABM of Consumer Behavior
Introduction
o Agent-Based Modeling and Social Science
o Case Study: Consumer Behavior
ABM of Consumer Behavior
o M&S of Culture and Personality
• Conceptual Model
• Computational Model
• Experimental Results
o Consumer Choice Aggregated Demand (CCAD)
• Maximizers
• Satisficers
• Results
Conclusion and Future Work
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
7. ABM of Consumer Behavior
- Culture (Power Distance, Individualism,
Masculinity, UA)
- Personality: Big Five (OCEAN)
- 6 Related Needs From Maslow, Max-
Neef
Sociological and
Psychological
Theories
Five Stages model of
Consumer Behavior
Consumer Behavior
And
Economics
Agent-Based Technology-
MASQ Meta Model
Computer Science
and
Artificial Intelligence
ABM of Consumer
Behavior
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
8. ABM of Consumer Behavior
Consumer Behavior Decision Process
Need
Recognition
Information
Search
Evaluation Purchase Post-
Purchase
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
9. ABM of Consumer Behavior
Hofstede Cultural Model
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
10. ABM of Consumer Behavior
Human Needs as Main Drives!
Social Status
Social Responsibility
Status Seeking (Power)
Safety
Novelty
Affiliation
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
11. Agent-Based Model (MASQ Meta Model) (Ferber 2009)
Internal External
Mind
Culture
Body/Object
Space
ABM of Consumer Behavior
Individual
Collective
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
12. ABM of Consumer Behavior
Introduction
o Agent-Based Modeling and Social Science
o Case Study: Consumer Behavior
ABM of Consumer Behavior
o M&S of Culture and Personality
• Conceptual Model
• Computational Model
• Experimental Results
o Consumer Choice Aggregated Demand (CCAD)
• Maximizers vs. Satisficers
• Results
Conclusion and Future Work
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
13. ABM of Consumer Behavior (Conceptual Model) (Roozmand 2011)
Mind
Culture
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
14. ABM of Consumer Behavior
Introduction
o Agent-Based Modeling and Social Science
o Case Study: Consumer Behavior
ABM of Consumer Behavior
o M&S of Culture and Personality
• Conceptual Model
• Computational Model
• Experimental Results
o Consumer Choice Aggregated Demand (CCAD)
• Maximizers vs. Satisficers
• Results
Conclusion and Future Work
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
15. Calculating Weights of Needs
max{ (1 )*(1 ) * , } ss ss w Pdi*status*DT Pdi status A
max{ (1 )*(1 ) * * * , } sr sr w Pdi status A pdi status DT
w maxMas*avg(O, E,1 A) (1 Mas)* A,0 st
w Mas A saf (1 )*
max{max{ , (1 )}* *(1 ), } nov nov w IDV UA O UA O
max{[ (1 ) * ( ) *(1 )], } aff aff w Ind avg E A Ind A
Computational Model
Mind
Belief
Update
Agent‘s
State
Recognition
S
T
A
T
E
Personality
Perception
Need
Action
Estimation
Wealth
Culture dimensions
57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
15
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS
16. - Consumer agent perceive the products in the
market
- Consumer agent sees the other consumer agents
and their products
Computational Model
Mind
Belief
Update
Agent‘s
State
Recognition
S
T
A
T
E
Personality
Perception
Need
Action
Estimation
Wealth
Culture dimensions
57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
16
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS
17. Actual State
Actual state
(1 ) t (wss *prss )
SS as e
Actual State (During Consumption)
t
t
SS as (1 decay )*as 1
SS SS
Computational Model
Mind
Belief
Update
Agent‘s
State
Recognition
S
T
A
T
E
Personality
Perception
Need
Action
Estimation
Wealth
Culture dimensions
57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
17
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS
18. t
SS ds f ds society ds market
Social influence on desired state
w
SS prSS
pr PRCA
N
t
SS ds society e
New products’ influence on desired state
w
SS prSS
pr PR
N
t
SS ds market e
t
SS ds AVG ds society ds market
57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
18
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS
)
1
( *
_ 1
)
1
( *
_ 1
( _ , _ ) t
SS
t
SS
Computational Model
Desired State
( _ , _ ) t
SS
t
SS
19. Discrepancy between actual and desired state
t
Need D ds as
t
SS
i
SS
i
Arousal
Need
i i
Need
i i
t
Need
t
Need
True D
False D
Aroused
w W
(1 )* (1 )*AVG_Price
1
Need
Needi
i
e
Computational Model
Mind
Belief
Update
Agent‘s
State
Recognition
S
T
A
T
E
Personality
Perception
Need
Action
Estimation
Wealth
Culture dimensions
57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
19
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS
20. Select the a product which satisfies the aroused
need.
t
pr E ds as
k k
k
{ss,sr,st ,saf ,nov,aff }
t
sel pr pr pr arg min E
Computational Model
Mind
Belief
Update
Agent‘s
State
Recognition
S
T
A
T
E
Personality
Perception
Need
Action
Estimation
Wealth
Culture dimensions
57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
20
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS
21. Experimental Results (Individual Decision Making)
1- There are totally 4 agents where 2 of them use our model and initially hold low status product
2- There are 2 products (high social status, low social status)
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
22. Experimental Results (Country-Level Results)
Eleven European Countries. Social Status
(Car Purchasing Behavior)
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
23. Experimental Results
Eleven European Countries. Social Responsibility
(Car Purchasing Behavior)
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Environmental Studies, Dartmouth College
24. 57 امید روزمند
سمینار دفاع از پایان نامه دکتری: مدل سازی مبتنی بر عامل رفتار خریدار بر اساس فرهنگ
و شخصیت
20/7/1390
24
57
Agent-Based Modeling and Simulation of Consumer Behavior Omid Roozmand Dartmouth College, ENVS