• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2017 Vol.8(3): 165-168 ISSN: 2010-023X
DOI: 10.18178/ijtef.2017.8.3.556

Market Predictor: Game Theory Model Forecasting Consumer Choice through Analysis of Simultaneous Marketing Strategies and Consumer Behavior

Dayoon Kim, Jin Won Mun, Daniel Jin Won Kim, and Soo Hyun Ahn
Abstract—In the current age of endless technological innovations and seemingly insatiable customer demand, digital products are released more frequently and in greater masses than ever. As a result, rivaling companies can no longer off-set the release dates for their newest products and have to directly compete with each other for the consumer choice. Therefore, companies have focused their marketing plans on differentiation strategy, making the company’s product stand out by attacking the other company through comparative advertising, protecting its product through defensive advertising, and addressing its faults through product updates. This paper introduces a new game theory model, Market Predictor, in order to forecast the winner of the competition as a result of such marketing plans. Market Predictor comprises of a math algorithm that predicts customer choice by using 3 mathematical skills--game theory, stochastic theory, and differential calculus-- and considering 3 marketing factors--comparative advertising, defensive advertising, and product quality. Market Predictor aims to provide a tool for strategically forming marketing plans, as shown through an illustrative example. The implications of this research is that even complex real world events can be predicted and controlled through applying a mathematical approach. Market Predictor’s algorithm can be applied to any competition between two sides to strategically plan their offensive and defensive positions.

Index Terms—Comparative advertising, defensive advertising, game theory, marketing strategies, product updates.

The author is with Branksome Hall Asia, South Korea (e-mail: dayoonkim202@gmail.com).

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Cite: Dayoon Kim, Jin Won Mun, Daniel Jin Won Kim, and Soo Hyun Ahn, "Market Predictor: Game Theory Model Forecasting Consumer Choice through Analysis of Simultaneous Marketing Strategies and Consumer Behavior," International Journal of Trade, Economics and Finance vol.8, no.3, pp. 页码, 2017.

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