Advertising cost interactions and the optimality of pulsing

Advertising cost interactions and the optimality of pulsing

0.00 Avg rating0 Votes
Article ID: iaor19911899
Country: United States
Volume: 37
Issue: 2
Start Page Number: 157
End Page Number: 169
Publication Date: Feb 1991
Journal: Management Science
Authors: ,
Abstract:

Whether pulsing, other than chattering, can be optimal is an important concern to both advertising practitioners and marketing scientists. In this paper, the authors explicitly incorporate various types of costs to a one-state advertising model to analyze the effect of these costs on the optimal advertising policy. They prove that the interaction of fixed and pulsing costs does not make pulsing optimal under a reasonable condition. This result not only identifies an important factor that leads to the optimality of pulsing, but also generalizes the finding obtained by Sasieni.

Reviews

Required fields are marked *. Your email address will not be published.