IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v11y1965i10pb231-b243.html
   My bibliography  Save this article

Brand Switching and Mathematical Programming in Market Expansion

Author

Listed:
  • Philip H. Hartung

    (Montgomery Ward, Chicago)

  • James L. Fisher

    (McKinsey and Company, Inc., London)

Abstract

In a number of industries, product is sold through individual outlets under control of a company through lease or franchise. If these individual outlets are independent, in that sales in one have no influence on another, then the decision to add or subtract an outlet in a marketing area rests solely on investment and cost considerations. If, on the other hand, one outlet has an influence on another in terms of sales, then the decision to expand must take this influence into account. This paper suggests a method for planning expansion systematically and consistently when this influence, which is called market share, is present. The approach taken is that of mathematical programming where the objective function is nonlinear. The solution suggested here is one of iteration which has worked well for problems studied by the authors. A theoretical model, based on brand switching, is validated by experimental evidence and these results are then employed in the development of a long-term planning model.

Suggested Citation

  • Philip H. Hartung & James L. Fisher, 1965. "Brand Switching and Mathematical Programming in Market Expansion," Management Science, INFORMS, vol. 11(10), pages 231-243, August.
  • Handle: RePEc:inm:ormnsc:v:11:y:1965:i:10:p:b231-b243
    DOI: 10.1287/mnsc.11.10.B231
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.11.10.B231
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mnsc.11.10.B231?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krafft, Manfred & Goetz, Oliver & Mantrala, Murali & Sotgiu, Francesca & Tillmanns, Sebastian, 2015. "The Evolution of Marketing Channel Research Domains and Methodologies: An Integrative Review and Future Directions," Journal of Retailing, Elsevier, vol. 91(4), pages 569-585.
    2. Michael, Steven C., 2003. "First mover advantage through franchising," Journal of Business Venturing, Elsevier, vol. 18(1), pages 61-80, January.
    3. H-Y Tsao & P-C Lin & L Pitt & C Campbell, 2009. "The impact of loyalty and promotion effects on retention rate," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(5), pages 646-651, May.
    4. Madjid Tavana & Debora Di Caprio & Francisco J. Santos-Arteaga, 2016. "Loyal customer bases as innovation disincentives for duopolistic firms using strategic signaling and Bayesian analysis," Annals of Operations Research, Springer, vol. 244(2), pages 647-676, September.
    5. H-Y Tsao & L Pitt & C Campbell, 2010. "Analysing consumer segments to budget for loyalty and promotion programmes and maximize market share," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(10), pages 1523-1529, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:11:y:1965:i:10:p:b231-b243. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.