Name
Abstract | ||
|---|---|---|
With a new durable good appearing, the price of old model tends to decrease and the performance of the new one tends to be improved. Thus, a consumer who has purchasing desire could make decision of buying a new one or the old one. The purchasing problem is presented as a Discrete Time Markov Decision Process (DTMDP) model with consumer reserve prices to different durable generations as the states, and the objective is to maximise consumer's purchasing value. Then, a modified MDP model and several assumptions are given. With a new concept of perceived coefficient introduced, purchasing value reward in a stage could be described by durables' physical and perceiveds values. It is shown that the optimal purchasing points exist in a special case with two generations attracting the consumer in one stage and optimal purchasing decisions vary with the consumers' preference, which are shown with a numerical example. |
Year | DOI | Venue |
|---|---|---|
2010 | 10.1504/IJSTM.2010.032886 | INTERNATIONAL JOURNAL OF SERVICES TECHNOLOGY AND MANAGEMENT |
Keywords | Field | DocType |
durables, individual consumer behaviour, Markov Decision, Processes, MDP, optimal purchase policy, perceived value | Economics,Consumer behaviour,Microeconomics,Markov decision process,Durable good,Purchasing,Discrete time and continuous time,Marketing,Special case | Journal |
Volume | Issue | ISSN |
14 | 1 | 1460-6720 |
Citations | PageRank | References |
0 | 0.34 | 4 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Junxiu Jia | 1 | 12 | 1.80 |
| Rong Du | 2 | 74 | 11.92 |
| Qi-ying Hu | 3 | 38 | 6.56 |