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LLM-Based Multi-Agent System for Simulating and Analyzing Marketing and Consumer Behavior

Published: October 20, 2025 | arXiv ID: 2510.18155v1

By: Man-Lin Chu , Lucian Terhorst , Kadin Reed and more

Potential Business Impact:

Tests marketing ideas on fake shoppers first.

Business Areas:
Machine Learning Artificial Intelligence, Data and Analytics, Software

Simulating consumer decision-making is vital for designing and evaluating marketing strategies before costly real-world deployment. However, post-event analyses and rule-based agent-based models (ABMs) struggle to capture the complexity of human behavior and social interaction. We introduce an LLM-powered multi-agent simulation framework that models consumer decisions and social dynamics. Building on recent advances in large language model simulation in a sandbox environment, our framework enables generative agents to interact, express internal reasoning, form habits, and make purchasing decisions without predefined rules. In a price-discount marketing scenario, the system delivers actionable strategy-testing outcomes and reveals emergent social patterns beyond the reach of conventional methods. This approach offers marketers a scalable, low-risk tool for pre-implementation testing, reducing reliance on time-intensive post-event evaluations and lowering the risk of underperforming campaigns.

Country of Origin
🇺🇸 United States

Page Count
8 pages

Category
Computer Science:
Artificial Intelligence