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Market choices driven by reference groups. An evolutionary approach
1Department of Mathematics and Mathematical Economics, Warsaw School of Economics, Al. Niepodłeglości 162, Warsaw, 02-554 Poland.
Abstract:
The present paper tries to answer analytically how much the reference group influence can affect an actual market share of a particular brand or product. It is found that the increase of the size of a reference group and the probability of following the majority within the reference group may lead to the temporary modest prevalence of one brand. This result requires a relatively large size of a reference group and a high probability of following the majority within the reference group. If these conditions are not satisfied the effect on the market share is negligible.
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