Induction: processes of inference, learning, and discovery
Induction: processes of inference, learning, and discovery
Growing artificial societies: social science from the bottom up
Growing artificial societies: social science from the bottom up
Adaptation in Natural and Artificial Systems: An Introductory Analysis with Applications to Biology, Control and Artificial Intelligence
Introduction: The Challenge of Reinforcement Learning
Machine Learning
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Providing high value products and services to customers normally leads to customer loyalty and profits. In practice, the relationship of customer value, loyalty, and profits can be observed in the market. However, the dynamic interactive relationships which lead to customer loyalty and profits still remain ambiguous. In this paper, the Agent-Based Computational Economics (ACE) model is introduced to explore the formation of customer loyalty in the Taiwanese imported lumber market. Using agents with reinforced learning algorithms in trading simulations, the effects of customer value on loyalty and profit are incorporated and examined in this interactive dynamic model. As results, the positive correlations among variables of customer value, loyalty, and profits are observed. A controlled experiment shows that changing customer value leads to changes in customer loyalty and profits, but price is not the determinant factor for improving customer loyalty. The R 2 values of customer loyalty and profits elucidate that they are increasing as the time lapsed elongate. Providing high value of products and services is a better strategy for suppliers to attract potential loyal customers.