Agent-based model of the market penetration of a new product

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dc.contributor.advisorDurbach, Ianen_ZA
dc.contributor.advisorScott, Leanneen_ZA
dc.contributor.authorMagadla, Thandulwazien_ZA
dc.date.accessioned2017-08-16T12:33:14Z
dc.date.available2017-08-16T12:33:14Z
dc.date.issued2014en_ZA
dc.descriptionIncludes bibliographical references.en_ZA
dc.description.abstractThis dissertation presents an agent-based model that is used to investigate the market penetration of a new product within a competitive market. The market consists of consumers that belong to social network that serves as a substrate over which consumers exchange positive and negative word-of-mouth communication about the products that they use. Market dynamics are influenced by factors such as product quality; the level of satisfaction that consumers derive from using the products in the market; switching constraints that make it difficult for consumers to switch between products; the word-of-mouth that consumers exchange and the structure of the social network that consumers belong to. Various scenarios are simulated in order to investigate the effect of these factors on the market penetration of a new product. The simulation results suggest that: ■ A new product reaches fewer new consumers and acquires a lower market share when consumers switch less frequently between products. ■ A new product reaches more new consumers and acquires a higher market share when it is of a better quality to that of the existing products because more positive word-of-mouth is disseminated about it. ■ When there are products that have switching constraints in the market, launching a new product with switching constraints results in a higher market share compared to when it is launched without switching constraints. However, it reaches fewer new consumers because switching constraints result in negative word-of-mouth being disseminated about it which deters other consumers from using it. Some factors such as the fussiness of consumers; the shape and size of consumers' social networks; the type of messages that consumers transmit and with whom and how often they communicate about a product, may be beyond the control of marketing managers. However, these factors can potentially be influenced through a marketing strategy that encourages consumers to exchange positive word-of-mouth both with consumers that are familiar with a product and those who are not.en_ZA
dc.identifier.apacitationMagadla, T. (2014). <i>Agent-based model of the market penetration of a new product</i>. (Thesis). University of Cape Town ,Faculty of Science ,Department of Statistical Sciences. Retrieved from http://hdl.handle.net/11427/24871en_ZA
dc.identifier.chicagocitationMagadla, Thandulwazi. <i>"Agent-based model of the market penetration of a new product."</i> Thesis., University of Cape Town ,Faculty of Science ,Department of Statistical Sciences, 2014. http://hdl.handle.net/11427/24871en_ZA
dc.identifier.citationMagadla, T. 2014. Agent-based model of the market penetration of a new product. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Magadla, Thandulwazi AB - This dissertation presents an agent-based model that is used to investigate the market penetration of a new product within a competitive market. The market consists of consumers that belong to social network that serves as a substrate over which consumers exchange positive and negative word-of-mouth communication about the products that they use. Market dynamics are influenced by factors such as product quality; the level of satisfaction that consumers derive from using the products in the market; switching constraints that make it difficult for consumers to switch between products; the word-of-mouth that consumers exchange and the structure of the social network that consumers belong to. Various scenarios are simulated in order to investigate the effect of these factors on the market penetration of a new product. The simulation results suggest that: ■ A new product reaches fewer new consumers and acquires a lower market share when consumers switch less frequently between products. ■ A new product reaches more new consumers and acquires a higher market share when it is of a better quality to that of the existing products because more positive word-of-mouth is disseminated about it. ■ When there are products that have switching constraints in the market, launching a new product with switching constraints results in a higher market share compared to when it is launched without switching constraints. However, it reaches fewer new consumers because switching constraints result in negative word-of-mouth being disseminated about it which deters other consumers from using it. Some factors such as the fussiness of consumers; the shape and size of consumers' social networks; the type of messages that consumers transmit and with whom and how often they communicate about a product, may be beyond the control of marketing managers. However, these factors can potentially be influenced through a marketing strategy that encourages consumers to exchange positive word-of-mouth both with consumers that are familiar with a product and those who are not. DA - 2014 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2014 T1 - Agent-based model of the market penetration of a new product TI - Agent-based model of the market penetration of a new product UR - http://hdl.handle.net/11427/24871 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/24871
dc.identifier.vancouvercitationMagadla T. Agent-based model of the market penetration of a new product. [Thesis]. University of Cape Town ,Faculty of Science ,Department of Statistical Sciences, 2014 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/24871en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Statistical Sciencesen_ZA
dc.publisher.facultyFaculty of Scienceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherStatistical Sciencesen_ZA
dc.titleAgent-based model of the market penetration of a new producten_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMScen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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