Article ID: | iaor20043183 |
Country: | Netherlands |
Volume: | 150 |
Issue: | 3 |
Start Page Number: | 672 |
End Page Number: | 687 |
Publication Date: | Nov 2003 |
Journal: | European Journal of Operational Research |
Authors: | Nair Suresh K., Tarasewich Peter |
Keywords: | advertising, heuristics |
This research addresses the optimal design of a series of promotions (which might offer free gifts, discounts, or special services) periodically mailed to potential customers. A model and methodology are presented which maximize the multiple purchases of these customers over time using opinions from both promotion designers and customers. A Genetic Algorithm-based heuristic is developed to efficiently arrive at good promotion designs, and the methodology is applied to a problem using real data.