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Agent-based modeling of the word-of-mouth effect on promoting brand-name agricultural products
Authors:Huang  Qiuyi  Zheng  Xiaoping  Zhang  Mengjie  Zhang  Xiaoshuan
Institution:1.China Agricultural University, Qinghua Donglu No.17, Haidian District, Beijing, China
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Abstract:

Developing brand agricultural products (BAPs) has become a strategic choice for consumption upgrading and agricultural modernization in China. As a powerful marketing method, word-of-mouth (WOM) is rarely applied to BAPs. Based on the particularity of the agricultural environment and products in China, this paper focuses on the WOM behavior of consumers regarding BAPs. An agent-based simulation model was designed, including attitude and motivation functions. The former determines consumers’ attitudes toward BAPs, whereas the latter determines whether consumers will spread information by WOM. The model was validated, and some parameters were measured through a survey of Beijing consumers. Then, experiments were conducted to simulate the evolution process of consumers’ attitudes and willingness to engage in WOM and the influence of consumer heterogeneity on WOM spreading. Exploratory findings mainly show that (1) only when the strength of WOM marketing reaches a certain degree can it affect consumer attitudes toward BAPs, (2) in the early stage of WOM spreading, the greater the strength of economic stimulation to consumers, the greater the rate of WOM communication, and (3) the higher the education level of the target group of WOM marketing, the higher the efficiency of WOM communication.

Keywords:
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