1. On Comparing Alternative Advertising Policies of Pulsation.
- Author
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Mesak, Hani I. and Darrat, Ali F.
- Subjects
ADVERTISING ,MARKETING research ,MATHEMATICAL optimization ,MATHEMATICAL analysis ,SALES ,PROFIT - Abstract
In this paper, five alternative advertising policies that belong to the advertising pulsation class are compared analytically for linear and concave response functions using a modified version of the Vidale-Wolfe model. The results of the research show that (1) For both linear and concave response functions, advertising pulsing/maintenance policy dominates advertising pulsing policy but is dominated by the Uniform Advertising Policy. For convex response functions, the order of dominance is reversed. (2) For linear response functions, uniform advertising policy dominates the impulse advertising policy but is dominated by the chattering advertising policy. (3) For concave response functions, uniform advertising policy dominates both the impulse advertising policy and the chattering advertising policy. (4) For convex response functions, chattering advertising policy dominates both the advertising pulsing policy and the impulse advertising policy. The Vidal-Wolfe model is estimated using the well-known Lydia Pink data. Optimality analysis shows that the company was over advertising about half of the time studied. Over advertising seems to have produced appreciable gain in sales and created significant harriers to competitive entry at a little cost in terms of foregone profits. [ABSTRACT FROM AUTHOR]
- Published
- 1992
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