Amplificatiion of the products' competing power from heuristics

Abstract

     In this paper, we use a computer-simulation method and examine the hypothesis that consumers' purchasing heuristics amplifies the competing power of the low-involvement products. Under these two assumptions: (1) consumers use not optimizing but satisfycing and (2) shop managers follows POS-data and controls the exposing rate of products so that products with low competing power are immediately eliminated from the shop, the simulation results say these four results: (1) products with low competing power are immediately eliminated from the shop, (2) in case of highly competable products, there is a good circle that consumers' easily find the product which causes high sales which causes consumers' much easier finding and so on, (3) it is difficult to know in advance which product can survivve, (4) regardless of how severe competition among products, consumers can enjoy the stable consumer surplus from purchasing products.