<p>Does peer consumption affect our consumption? How significant is its impact on China? What are the channels or mechanisms behind it? This study establishes an evolutionary game model of Fuji apple’s purchase choice strategy, reveals the dynamic process of consumers’ consumption choice of Fuji apple products under the influence of their peers, and analyzes the internal mechanism of peers’ influence on consumers’ individual choices. In addition, we validate peer effects using unique data from a face-to-face survey of 2,092 consumers in six Chinese cities. The dataset includes information on the administrative regions of each surveyed sample city and the demographic characteristics of the participants, which are used to build reference groups made of the minimum geographic code and participant’s same demographic characteristics. Based on the data, we have identified three potential channels of peer effects: “keeping up with the Joneses,” place of origin identification, and risk-sharing. As a result, we have found clear evidence of peer effects on Fuji apple consumption behavior. These results suggest that the “keeping up with the Joneses” and the place of origin identification channels of the peer effects are the main reasons for differentiating consumers’ purchasing and consumption levels of Fuji apple products. In addition, there is evidence that the peer effect can mitigate the impact of risk shock on consumers purchasing Fuji apple products to some extent.</p>

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Do peer effects matter on consumer purchases of Fuji apples? Evolutionary game analysis and reality verification

  • Ruifeng Liu,
  • Mengling Tian,
  • Jian Wang,
  • Yefan Nian,
  • Hengyun Ma,
  • Fei Liang

摘要

Does peer consumption affect our consumption? How significant is its impact on China? What are the channels or mechanisms behind it? This study establishes an evolutionary game model of Fuji apple’s purchase choice strategy, reveals the dynamic process of consumers’ consumption choice of Fuji apple products under the influence of their peers, and analyzes the internal mechanism of peers’ influence on consumers’ individual choices. In addition, we validate peer effects using unique data from a face-to-face survey of 2,092 consumers in six Chinese cities. The dataset includes information on the administrative regions of each surveyed sample city and the demographic characteristics of the participants, which are used to build reference groups made of the minimum geographic code and participant’s same demographic characteristics. Based on the data, we have identified three potential channels of peer effects: “keeping up with the Joneses,” place of origin identification, and risk-sharing. As a result, we have found clear evidence of peer effects on Fuji apple consumption behavior. These results suggest that the “keeping up with the Joneses” and the place of origin identification channels of the peer effects are the main reasons for differentiating consumers’ purchasing and consumption levels of Fuji apple products. In addition, there is evidence that the peer effect can mitigate the impact of risk shock on consumers purchasing Fuji apple products to some extent.