Optimal Duration of Magazine Promotions
AbstractThe planning of promotions and other marketing events frequently requires manufacturers to make decisions about the optimal duration of these activities. Yet manufacturers often lack the support tools for decision making. We assume that customer decisions at the aggregated level follow a state-dependent Markov process. On the basis of the expected economic return associated with dynamic response to stimuli, we determine the ideal length of marketing events using dynamic programming optimization and apply the model to a complex promotion event. Results suggest that this methodology could help managers in the publishing industry to plan the optimal duration of promotion events. Copyright Springer Science + Business Media, Inc. 2005
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Bibliographic InfoArticle provided by Springer in its journal Marketing Letters.
Volume (Year): 16 (2005)
Issue (Month): 2 (April)
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Web page: http://www.springerlink.com/link.asp?id=100312
optimal duration of promotion events; Markovian process; dynamic programming;
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- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
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