Mathematical Models of Market Behavior: Past, Present, and Future

IN SPITE OF SUBSTANTIAL RESEARCH EFFORTS IN THE FIELD OF CONSUMER-BEHAVIOR, MATHEMATICAL MODELING OF SUCH BEHAVIOR IS STILL IN ITS EARLY STAGES. ONE OF THE MAJOR ADVANCES IN MODELING IS THE ADOPTION OF A PROBABILISTIC APPROACH IN DEPICTING CONSUMER PURCHASE BEHAVIOR. IN A PROBABILISTIC MODEL, THE OUTCOMES OF CHOICE SITUATIONS ARE TREATED AS RESULTING FROM UNDERLYING PROBABILITIES. IN THIS CONTEXT, THE CURRENT STATE OF MATHEMATICAL MODEL BUILDING ACTIVITY IN THE FIELD OF CONSUMER-BEHAVIOR IS DISCUSSED. MODELS INCORPORATING SUCH MARKETING VARIABLES AS STORE OF PURCHASE, SIZE, PRICE, INTERPURCHASE-TIME, AND ADVERTISING EXPOSURE ARE ANALYZED. FINALLY, AUTHOR PRESENTS SCOPE OF FUTURE RESEARCH WITH DESCRIPTION OF EXHAUSTIVE CONCEPTUAL MODEL DETAILING THE CONSUMER AND HER INTERACTION WITH THE MARKETING ENVIRONMENT. REFERENCES.