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Economic Analysis: Theory and Practice
 

Consumer's preference: psychological attitude and dynamic modeling

Vol. 13, Iss. 41, NOVEMBER 2014

Available online: 4 November 2014

Subject Heading: ECONOMIC AND MATHEMATICAL MODELING

JEL Classification: 

Pages: 59-67

Ragul'skii A.D. Dubna International University for Nature, Society and Man, Dubna, Moscow region, Russian Federation
ADR25@yandex.ru

New approaches to the study of consumer preferences impose new requirements to applied models. However, the existing modeling techniques, which are mainly developed by neoclassical economists, as a rule, are poorly adapted to take into account socio-psychological factors of consumer behavior. Thus, nowadays it is extremely relevant and imperious to improve the methodology and to develop new approaches that will enable not only to create abstract optimization schemes, but also to adapt data from other disciplines for the purposes of economic science. The purpose of the study is to examine the author's methodological framework and to build a dynamic model of consumer preferences of a group of individuals, taking into account the effects of changes in income and prices and the impact of individual, psychological, social and group factors. The objectives of the study are to formulate methodological bases of the model describing the dynamics of consumer preferences; to provide a formal description of the model showing the formation and dynamics of attitudes, preferences and consumer demand; to conduct a computing experiment and to interpret its results. The results of the computing experiment enable to expect a constructive use of the psychological attitude theory to study consumer demand. The experiment results also show that the model enables to more accurately describe the dynamics of consumer preferences as compared to what had existed in the past. The practical value of the research is its results application in the sphere of marketing and pricing.

Keywords: consumer preferences, utility demand dynamics, psychological set, model, algorithm

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