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An agent-based simulation of customer multi-channel choice behavior

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Abstract

Experimenting with multi-channel operations in reality is both costly and risky, because it can severely affect a firm’s revenues, profitability, customer churn, and other customer metrics. In this paper, we introduce an agent-based simulation approach as a means for exploring and analyzing the impact of (combinations of) multi-channel activities on customer channel choices before having implemented them in practice. The simulation takes into account the heterogeneity of customers, social dynamics in their behavior, and the various phases of the purchasing process. To this end, customers are represented by agents whose phase-specific channel perceptions determine their channel choices. These perceptions may be altered by communication with other agents, first-hand experience of the channel, and/or marketing activities. The approach is illustrated through a sample application for which data from an international multi-channel retailer as well as from an empirical study among Austrian customers have been used.

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Notes

  1. http://cs.gmu.edu/~eclab/projects/mason/.

  2. http://dst.lbl.gov/ACSSoftware/colt/.

  3. http://jung.sourceforge.net/.

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Acknowledgments

We thank the Austrian National Bank (OeNB) for financial support of our work by Grant No. 123937. Furthermore, we are indebted to Stefan Katzensteiner for implementing the simulation tool.

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Authors and Affiliations

  1. Department of Business Administration, University of Vienna, Oskar Morgenstern Platz 1, 1090, Vienna, Austria

    Lea M. Sonderegger-Wakolbinger

  2. Department of Business Administration and Economics, Bielefeld University, Universitaetsstr. 25, 33615, Bielefeld, Germany

    Christian Stummer

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  1. Lea M. Sonderegger-Wakolbinger
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  2. Christian Stummer
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Correspondence to Christian Stummer.

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Sonderegger-Wakolbinger, L.M., Stummer, C. An agent-based simulation of customer multi-channel choice behavior. Cent Eur J Oper Res 23, 459–477 (2015). https://doi.org/10.1007/s10100-015-0388-5

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  • DOI: https://doi.org/10.1007/s10100-015-0388-5

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