Article ID: | iaor19981553 |
Country: | Netherlands |
Volume: | 84 |
Issue: | 2 |
Start Page Number: | 250 |
End Page Number: | 264 |
Publication Date: | Jul 1995 |
Journal: | European Journal of Operational Research |
Authors: | Morrison Donald G., Tang Christopher S., Kim Donghoon |
Keywords: | marketing |
This paper introduces a model that analyzes the impact of the length of time spent presenting new seasonal products. Specifically, we develop a simple stochastic model for determining the optimal airing time for each product so that the net profit is maximized. We consider cases in which there are two products to present, two channels to select for airing the products, and two methods of presentation to choose. In each case, we formulate the problem as a mathematical program and characterize the properties of the optimal airing time. These properties may provide managerial insights for determining airing time for each product, selecting channels to air the products, and choosing presentation method for products. In addition, this analysis may help the management to make strategic decisions in airing products that would lead to an increase in sales.