ADVERTISING COST INTERACTIONS AND THE OPTIMALITY OF PULSING

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Whether pulsing, other than chattering, can be optimal is an important concern to both advertising practitioners and marketing scientists. In this paper, we explicitly incorporate various types of costs to a one-state advertising model to analyze the effect of these costs on the optimal advertising policy. We prove that the interaction of fixed and pulsing costs does 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 (1971).
Publisher
INST OPERATIONS RESEARCH MANAGEMENT SCIENCES
Issue Date
1991-02
Language
English
Citation

MANAGEMENT SCIENCE, v.37, no.2, pp.157 - 169

ISSN
0025-1909
URI
http://hdl.handle.net/10203/4588
Appears in Collection
MT-Journal Papers(저널논문)
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