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Analysis of marketing mix interaction effects and interdependencies: a normative approach

Author

Listed:
  • Marc Logman

    (EHSAL (Business School), Stormstraat 2, 1000 Brussels, Belgium)

  • Wilfried Pauwels

    (UFSIA (University of Antwerp), Prinsstraat 13, 2000 Antwerpen, Belgium)

Abstract

This paper gives a general, theoretical treatment of the interdependency between price and communication expenditures. We analyze how interaction effects (for example the impact of communication on the sales sensitivity to price changes) affect the optimal marketing mix structure (for example the impact of communication expenditures on the optimal price). Moreover, necessary and sufficient conditions are derived for the optimal price to be independent of the communication expenditures and|or for the optimal communication expenditures to be independent of price. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Marc Logman & Wilfried Pauwels, 1998. "Analysis of marketing mix interaction effects and interdependencies: a normative approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 343-353.
    • Handle: RePEc:wly:mgtdec:v:19:y:1998:i:6:p:343-353
    DOI: 10.1002/(SICI)1099-1468(199809)19:6<343::AID-MDE884>3.0.CO;2-X
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    Cited by:

    1. Roucan-Kane, Maud & Peake, Whitney O., 2007. "Milking The Most From Your Promotional Dollars: An Analysis Of Agribusiness Firms Serving U.S.Agricultural Producers," Working papers 7331, Purdue University, Department of Agricultural Economics.

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