Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision
Subscription decision in the telecom market is quite complex and cumbersome, invoking decision inertia in consumers and resulting in suboptimal choices. We implemented choice inertia and consumer interaction as an agent-based model to better understand the process. The model illustrates that with ad...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-06-01
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| Series: | Games |
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| Online Access: | https://www.mdpi.com/2073-4336/13/3/47 |
| _version_ | 1797487233174863872 |
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| author | Barsha Saha Miguel Martínez-García Sharad Nath Bhattacharya Rohit Joshi |
| author_facet | Barsha Saha Miguel Martínez-García Sharad Nath Bhattacharya Rohit Joshi |
| author_sort | Barsha Saha |
| collection | DOAJ |
| description | Subscription decision in the telecom market is quite complex and cumbersome, invoking decision inertia in consumers and resulting in suboptimal choices. We implemented choice inertia and consumer interaction as an agent-based model to better understand the process. The model illustrates that with adequate peer interactions with active consumers, inactive consumers could overcome their inertia significantly and switch to a better alternative. Furthermore, the newly converted active consumers influenced their inert neighbors as a ripple effect. Active consumers contribute to firm profits and healthy market competition. Moreover, in environments with low neighborhood effects and a stronger inertia threshold, firms are able to maintain profits by retaining inert consumers. We show that apart from the attractiveness of market offerings, firms can benefit from understanding consumer inertia and devising means to reduce it. |
| first_indexed | 2024-03-09T23:45:44Z |
| format | Article |
| id | doaj.art-5ab7546676cb4d66b29337728715dd0e |
| institution | Directory Open Access Journal |
| issn | 2073-4336 |
| language | English |
| last_indexed | 2024-03-09T23:45:44Z |
| publishDate | 2022-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Games |
| spelling | doaj.art-5ab7546676cb4d66b29337728715dd0e2023-11-23T16:44:30ZengMDPI AGGames2073-43362022-06-011334710.3390/g13030047Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription DecisionBarsha Saha0Miguel Martínez-García1Sharad Nath Bhattacharya2Rohit Joshi3Indian Institute of Management Shillong, Shillong 793018, IndiaDepartment of Aeronautical and Automotive Engineering, Loughborough University, Loughborough LE11 3TU, UKIndian Institute of Management Shillong, Shillong 793018, IndiaIndian Institute of Management Shillong, Shillong 793018, IndiaSubscription decision in the telecom market is quite complex and cumbersome, invoking decision inertia in consumers and resulting in suboptimal choices. We implemented choice inertia and consumer interaction as an agent-based model to better understand the process. The model illustrates that with adequate peer interactions with active consumers, inactive consumers could overcome their inertia significantly and switch to a better alternative. Furthermore, the newly converted active consumers influenced their inert neighbors as a ripple effect. Active consumers contribute to firm profits and healthy market competition. Moreover, in environments with low neighborhood effects and a stronger inertia threshold, firms are able to maintain profits by retaining inert consumers. We show that apart from the attractiveness of market offerings, firms can benefit from understanding consumer inertia and devising means to reduce it.https://www.mdpi.com/2073-4336/13/3/47consumer behavior (inertia)telecommunicationscompetitiongame theoryagent-based modellinghomophily |
| spellingShingle | Barsha Saha Miguel Martínez-García Sharad Nath Bhattacharya Rohit Joshi Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision Games consumer behavior (inertia) telecommunications competition game theory agent-based modelling homophily |
| title | Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision |
| title_full | Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision |
| title_fullStr | Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision |
| title_full_unstemmed | Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision |
| title_short | Overcoming Choice Inertia through Social Interaction—An Agent-Based Study of Mobile Subscription Decision |
| title_sort | overcoming choice inertia through social interaction an agent based study of mobile subscription decision |
| topic | consumer behavior (inertia) telecommunications competition game theory agent-based modelling homophily |
| url | https://www.mdpi.com/2073-4336/13/3/47 |
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