A Consumption Behavior Model with Advertising and Word-of-Mouth Effect

A Consumption Behavior Model with Advertising and Word-of-Mouth Effect

Year:    2019

Author:    Peidi Nie, M. A. Abd-Rabo, Yutong Sun, Jingli Ren

Journal of Nonlinear Modeling and Analysis, Vol. 1 (2019), Iss. 4 : pp. 461–489

Abstract

It is widely-held belief that people's consumption behavior is partly determined by advertising and word-of-mouth effect especially in monopolistic competitive market. Owing to this, we propose a mathematical model to interpret consumer behavior under the advertising and word-of-mouth effects, which is divided into continuous and discrete types for dynamic behavior analysis. Our research indicates the continuous model undergoes fold bifurcation, Hopf bifurcation, and degenerate fold-Hopf bifurcation; the discrete model undergoes flip bifurcation and Neimark-Sacker bifurcation. Moreover, bifurcation diagrams are given by using MATLAB to illustrate the model. Based on the theory of Hopf bifurcation or Flip bifurcation, the system undergoes supercritical Hopf bifurcation or Flip bifurcation under certain conditions. This leads to both advertising impacts periodically on consumer behavior, and a short-term reduction cause no effect the public's recognition of the brand, which can guide precision advertising investment.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.12150/jnma.2019.461

Journal of Nonlinear Modeling and Analysis, Vol. 1 (2019), Iss. 4 : pp. 461–489

Published online:    2019-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    29

Keywords:    The consumption behaviour model Hopf bifurcation fold bifurcation Flip bifurcation Neimark-Sacker bifurcation.

Author Details

Peidi Nie

M. A. Abd-Rabo

Yutong Sun

Jingli Ren