Learning How to Consumeand Returns to Product Promotion

This paper presents the computational model of consumer behaviour. We consider twosources of product specic consumer skill acquisition, termed here as learning how to consume:learning by consuming and consumer socialization. Consumers utilize these two sources inorder to derive higher valuations for products they are consuming. In this framework wediscuss the behavior of returns to product promotion relative to the changes in productcharacteristics, such as quality and user-friendliness, as well as in case of varying intensity ofconsumer socialization.[...]