Download or read book Artificial Intelligence and Consumer Behavior Relationship written by Johnny Ch Lok and published by Independently Published. This book was released on 2018-09-14 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic science or economic art methods predict consumer behavior Economic is both a science and art. Economic is considered as science because systematic knowledge derived from observation, study and experimentation. An art is the practical application of knowledge for achieving definition ends. A science teaches us to know a phenomenon and art traches us to do a thing. How to apply economic science or art method to predict consumer behavior? for example, there is a inflation US this year. This information is derived from positive science. The government takes certain fiscal and monetary measures to bring down to general level of prices in the country. The study of the monetary measures to bring down inflation makes the subject of economics as an art. Hence, as this case, if US government applies economic science or art method to predict this year will have inflation in US, then US government will attempt to avoid social general product prices to be raised, due to inflation influence. It aims to avoid US consumers reduce consumption desire in this year. For another example, nothing could be more useful than water. But in much of the world waste is plentiful enough that another glass more or less matters little to a fresh water supply agent businessman. So, water is chap. But, if any offices buy bottle of glass fresh water to let employees to drink. It will bring advantages that they do not spend time to buy water to drink when they are working in the office time in any offices as well as employees do not need to heat water to drink to waste time to work in offices. So, the bottle of fresh drinking water supply agent is one kind of drinking water product monopoly fresh drinking water supplier to supply fresh drinking water to satisfy office employees who do not need to spend time to heat water to drink in offices. Hence, it is possible that replace other different kind taste of drink or office employees themselves heat water drink in offices. It is general office employees' drinking habits and drinking choice in offices popularly. So, the bottle of fresh drinking water supply agents will concentrate on selling their fresh drinking water to office employee customers only in global fresh drinking water consumption target market. The office employees must be fresh drinking water companies' main target consumers. What is economic laws qualitative or quantitative method to predict consumer behavior? Law of economic are qualitative in nature. They are not exactly stated in quantitative terms. They tell the direction of change which is expected rather than the amount of change. For example, according to the law of consumer demand, the quantity demanded varies inversely with price, We don't say that 10% rise in price will lead to 30% fall in the customers' quantity demand. What is economic merits of deduction method? This method is near to reality. It is less time consuming and less expensive. the use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis. The deductive method is highly abstract. It require a great deal of care to avoid bad logic or faulty economic reasoning. This method makes conclusions to predict consumer behavior, due to reliance on imperfect and correct assumptions. It involves the process of reasoning from particular facts to general principle on the basic of experimentations, observations and statistical methods. In this method, data is collected about a certain economic phenomenon. There are systematically arranged and the general conclusions are drawn from them.