Decision-making of Online Consumers while Facing Full Cut Coupons Based on Prospect Theory
Online purchase has become an important shopping mode with the rapid development of e-commerce.In order to obtain competitive advantage, various promotions are put forward by business online, and full cut coupons is a common type of them.In this article, a decision model on the premise of bounded rationality is built for an online purchase simulated situation to calculate different prospect values respectively when using full cut coupons or not, combined with the value function and the weighting function from the Prospect Theory proposed by Kahneman and Tversky along with given empirical parameters.As a comparison, the value under Expected Utility theory is also calculated, and the results of decision are analyzed and summarized in the end.Conjoint analysis of decision results, we make a conclusion that when using full cut coupons consumers are willing to purchase more goods than planned because they can obtain a higher prospect value compared with not using the full cut coupons, though it will cost more money.
Prospect Theory full cut coupons decision model value function weighting function
DAI Jianhua WU Yingying
School of Economics and Management, Nanjing University of Science and Technology, Nanjing 210094, China
国际会议
武汉
英文
22-27
2016-10-21（万方平台首次上网日期，不代表论文的发表时间）