The Scale Purchased node changes the Willingness To Pay (WTP) values of individual Customers within the Input WTP Matrix according to the Product each Customer purchased.
Scaling individual Customer WTP values depending upon earlier Product purchases is helpful in a number of situations. For example, 'Learning Curves' may be simulated as Customers gain more familiarity with Products after purchase, and 'Switching Costs' may be simulated as it becomes increasingly difficult for a Customer to switch to another Product after purchasing the same Product multiple times. Firms may also experiment with the effectiveness of free trials, expecting both the WTP of Customers to increase after they have tried using the Product, and the 'Volume' demanded to increase so that each Customer buys more Quantity. The 'Law Of Diminishing Marginal Utility' can be simulated for Customers who purchase Products multiple times.
Individual WTP values can be scaled if a Customer does purchase the Focus Product or does not purchase the Focus Product. The WTP of Products related to the purchased Focus Product may also be scaled. This is useful when, for example, a Customer's WTP for a Brand increases after purchasing just a single Product. Several Scale Purchased nodes can be cascaded one after the other to fine-tune the updated WTP values depending upon the relationship between the purchased Focus Product and other Products in the Market.
More Help: Examples and sample workflows can be found at the Scientific Strategy website: www.scientificstrategy.com .