Should the Concept of Potential Customers be the Foundation of Demand Theory in Business Simulations

Abstract

The foundation of marketing demand variables in business simulations are two basic computations in business simulations: firm demand and industry demand. A number of papers presented at ABSEL conferences have addressed various issues involved in these two concepts. . All of these papers except for one paper presented in 2011 at ABSEL by the author have one thing in common. The concept of potential customers has not been adequately addressed. The primary purpose of this paper is to present a demand algorithm based on the concept of potential customers. As will be explained later in the paper, such an algorithm has been developed and tested and found workable within the framework of an actual simulation.