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MS-193 Depreciation and Replacement v05

[Market Simulation] MS-193 Depreciation and Replacement
Market Simulation (MS-193) - Depreciation and ReplacementAfter a Customer purchases a Product they have it to consume and will notneed to immediately buy it again. But over time the value of the 'old' Productdrops due to wear-and-tear and other depreciation. Eventually it makes moresense for a Customer to purchase a new Product rather than continuing touse the old Product. Competitive Story:This Market Simulation models the market for jeans. When Customers enter themarket they don't have a pair of jeans to wear. But after they buy a pair they thenhave the 'Old Product' and don't immediately need to buy another new pair. Thevalue of the old pair of jeans depreciates over time, with some Customers wearingout their jeans faster than others. Customers continually assess whether theyshould purchase a new pair of jeans or continue to wear their old pair of "free"jeans. Define the Willingness To Pay(WTP) of 8 x New Jeans Brandsfor 1,000 Customers. Depreciation Rate reflects thespeed at which Customers wearout their Old Jeans. Each Customer considersbuying a New Pair of Jeansversus keeping the Old Pair. ThePrice of keeping the Old Pair isfree. If a Customer buys a New Pair ofJeans then it becomes the "OldProduct" with a WTP set to thevalue the Customer had whenbuying the New Pair. Each Customer depreciates theirexisting pair of Old Jeans at theirpersonalized rate ofdepreciation. Loop back to the next iterationwhere the Customer thenconsiders whether to keep theirdepreciating pair of Old Jeans. Collects together eachCustomers Buy / No-Buydecision over all iterations. Count the number of times eachCustomer purchases a New Pairof Jeans. Plots the Customer's decisionmaking. Compare the value ofkeeping the Old Pair of Jeansversus buying a New Pair.Jean BrandsOld ProductCustomerDistributionsKeep Old Jeansor Buy New PairIf PurchasedOld Product = WTPConsider BuyingNext Pair of JeansTop = Buy NewBottom = Keep OldDepreciateOld ProductSetDepreciation RateCollectNew + OldSort byCustomer IDConsider BuyingNext Pair of JeansTrack CustomerPurchase HistoryTrackCustomersAggregate CustomerPurchase DecsionsSelect SingleCustomer C0001Over 10 PeriodsCustomer WTPOver TimeConsumer SurplusNew ProductsMaximum SurplusNew Products Table Creator CustomerDistributions Simulate Market Scale Purchased RecursiveLoop Start Row Splitter Scale Purchased CustomerDistributions Concatenate Sorter Recursive Loop End GroupBy RowID GroupBy Row Splitter Line Chart(JFreeChart) Math Formula(Multi Column) Column Aggregator Market Simulation (MS-193) - Depreciation and ReplacementAfter a Customer purchases a Product they have it to consume and will notneed to immediately buy it again. But over time the value of the 'old' Productdrops due to wear-and-tear and other depreciation. Eventually it makes moresense for a Customer to purchase a new Product rather than continuing touse the old Product. Competitive Story:This Market Simulation models the market for jeans. When Customers enter themarket they don't have a pair of jeans to wear. But after they buy a pair they thenhave the 'Old Product' and don't immediately need to buy another new pair. Thevalue of the old pair of jeans depreciates over time, with some Customers wearingout their jeans faster than others. Customers continually assess whether theyshould purchase a new pair of jeans or continue to wear their old pair of "free"jeans. Define the Willingness To Pay(WTP) of 8 x New Jeans Brandsfor 1,000 Customers. Depreciation Rate reflects thespeed at which Customers wearout their Old Jeans. Each Customer considersbuying a New Pair of Jeansversus keeping the Old Pair. ThePrice of keeping the Old Pair isfree. If a Customer buys a New Pair ofJeans then it becomes the "OldProduct" with a WTP set to thevalue the Customer had whenbuying the New Pair. Each Customer depreciates theirexisting pair of Old Jeans at theirpersonalized rate ofdepreciation. Loop back to the next iterationwhere the Customer thenconsiders whether to keep theirdepreciating pair of Old Jeans. Collects together eachCustomers Buy / No-Buydecision over all iterations. Count the number of times eachCustomer purchases a New Pairof Jeans. Plots the Customer's decisionmaking. Compare the value ofkeeping the Old Pair of Jeansversus buying a New Pair.Jean BrandsOld ProductCustomerDistributionsKeep Old Jeansor Buy New PairIf PurchasedOld Product = WTPConsider BuyingNext Pair of JeansTop = Buy NewBottom = Keep OldDepreciateOld ProductSetDepreciation RateCollectNew + OldSort byCustomer IDConsider BuyingNext Pair of JeansTrack CustomerPurchase HistoryTrackCustomersAggregate CustomerPurchase DecsionsSelect SingleCustomer C0001Over 10 PeriodsCustomer WTPOver TimeConsumer SurplusNew ProductsMaximum SurplusNew ProductsTable Creator CustomerDistributions Simulate Market Scale Purchased RecursiveLoop Start Row Splitter Scale Purchased CustomerDistributions Concatenate Sorter Recursive Loop End GroupBy RowID GroupBy Row Splitter Line Chart(JFreeChart) Math Formula(Multi Column) Column Aggregator

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Created by: Berlin
Created at: 2018-11-29
On NodePit since: 2021-02-05
Last update: 2024-11-23
Created with KNIME version: v4.3.0

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