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MS-195 Repeat Purchases v05

[Market Simulation] MS-195 Repeat Purchases
Market Simulation (MS-195) - Repeat PurchasesShows how to simulate Customers repeatedly buying a single Product from aCategory during a single shopping trip. The Law of Diminishing Marginal Utilitystates that after a Customer purchases a Product they are less likely topurchase the same Product again at the same time. But while Customersmay repeatedly buy the same Product, they will not buy a different Productfrom the same Category. For example, Customers buying non-foodconsumable Products (such as toothpaste, soap, batteries, or light bulbs) willstock-up by buying only the same Product during a single shopping trip. Competitive Story:This Market Simulation is designed to model supermarket Customers stocking-upon soap for use over the foreseeable future. These Customers will only buy theirmost preferred soap Product. But some Customers will stock-up by buying manybars of soap, while other Customers may just buy a single bar of soap. Step 1: Define the Willingness ToPay (WTP) for all of theCustomers and all of theProducts in the Market. Step 2: Iterate 10 times to makedecisions about which soap tostock-up on over the foreseeablefuture. Step 3: If the Customerpurchased a bar of soap thenreduce their Marginal Utility forthat Product. Zero the WTP for allother soap Products. Step 4: Group together all theProducts purchased by all of theCustomers.SoapChoicesCustomerWTP MatrixPredict ProductPurchasedIterate NextPurchase ChoiceTrack ProductPurchasedReduce WTP ofPurchased ProductFillShopping CartTrackCustomerCustomerShopping CartsZero WTP ofOther ProductsSetCustomerID Table Creator CustomerDistributions Simulate Market RecursiveLoop Start ConstantValue Column Scale Purchased Recursive Loop End RowID GroupBy Scale Purchased RowID Market Simulation (MS-195) - Repeat PurchasesShows how to simulate Customers repeatedly buying a single Product from aCategory during a single shopping trip. The Law of Diminishing Marginal Utilitystates that after a Customer purchases a Product they are less likely topurchase the same Product again at the same time. But while Customersmay repeatedly buy the same Product, they will not buy a different Productfrom the same Category. For example, Customers buying non-foodconsumable Products (such as toothpaste, soap, batteries, or light bulbs) willstock-up by buying only the same Product during a single shopping trip. Competitive Story:This Market Simulation is designed to model supermarket Customers stocking-upon soap for use over the foreseeable future. These Customers will only buy theirmost preferred soap Product. But some Customers will stock-up by buying manybars of soap, while other Customers may just buy a single bar of soap. Step 1: Define the Willingness ToPay (WTP) for all of theCustomers and all of theProducts in the Market. Step 2: Iterate 10 times to makedecisions about which soap tostock-up on over the foreseeablefuture. Step 3: If the Customerpurchased a bar of soap thenreduce their Marginal Utility forthat Product. Zero the WTP for allother soap Products. Step 4: Group together all theProducts purchased by all of theCustomers.SoapChoicesCustomerWTP MatrixPredict ProductPurchasedIterate NextPurchase ChoiceTrack ProductPurchasedReduce WTP ofPurchased ProductFillShopping CartTrackCustomerCustomerShopping CartsZero WTP ofOther ProductsSetCustomerIDTable Creator CustomerDistributions Simulate Market RecursiveLoop Start ConstantValue Column Scale Purchased Recursive Loop End RowID GroupBy Scale Purchased RowID

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Created by: Berlin
Created at: 2018-11-27
On NodePit since: 2021-02-05
Last update: 2024-04-27
Created with KNIME version: v4.3.0

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