IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v52y2001i11d10.1057_palgrave.jors.2601219.html
   My bibliography  Save this article

Optimal advertising pulsation policies: a dynamic programming approach

Author

Listed:
  • H I Mesak

    (Louisiana Tech University)

  • H Zhang

    (East Central University)

Abstract

This study formulates and solves an advertising pulsation problem for a monopolistic firm using dynamic programming (DP). The firm aims at maximising profit through an optimal allocation of the advertising budget in terms of rectangular pulses over a finite planning horizon. Aggregate sales response to the advertising effort is assumed to be governed by a modified version of the Vidale–Wolfe model in continuous time proposed by Little. Using a numerical example in which a planning horizon of one year is divided into one, two through ten equal time periods, computing routines are developed to solve 150 DP problems. Computational results show among other findings that the performance yielded by the DP policy dominates the uniform advertising policy (constant spending) for a concave advertising response function and the advertising pulsing policy (turning advertising on and off) for a linear or convex response function.

Suggested Citation

  • H I Mesak & H Zhang, 2001. "Optimal advertising pulsation policies: a dynamic programming approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(11), pages 1244-1255, November.
    • Handle: RePEc:pal:jorsoc:v:52:y:2001:i:11:d:10.1057_palgrave.jors.2601219
    DOI: 10.1057/palgrave.jors.2601219
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2601219
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2601219?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Alexander E. Saak, 2012. "Dynamic Informative Advertising of New Experience Goods," Journal of Industrial Economics, Wiley Blackwell, vol. 60(1), pages 104-135, March.
    2. Mercedes Esteban-Bravo & José Múgica & Jose Vidal-Sanz, 2005. "Optimal Duration of Magazine Promotions," Marketing Letters, Springer, vol. 16(2), pages 99-114, April.
    3. H Zhang & H I Mesak, 2010. "Optimal multi-period service capacity allocation and pricing allowing for uncertain competitive entry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(5), pages 780-789, May.
    4. Yanwu Yang & Baozhu Feng & Joni Salminen & Bernard J. Jansen, 2022. "Optimal advertising for a generalized Vidale–Wolfe response model," Electronic Commerce Research, Springer, vol. 22(4), pages 1275-1305, December.
    5. Parham Fami Tafreshi & Mohammad Hasan Aghdaie & Majid Behzadian & Mahdieh Ghani Abadi, 2016. "Developing a Group Decision Support System for Advertising Media Evaluation: A Case in the Middle East," Group Decision and Negotiation, Springer, vol. 25(5), pages 1021-1048, September.
    6. Zakaria Babutsidze, 2009. "Learning How to Consume and Returns to Product Promotion," Papers on Economics and Evolution 2009-05, Philipps University Marburg, Department of Geography.
    7. Zakaria Babutsidze, 2011. "Returns to product promotion when consumers are learning how to consume," Journal of Evolutionary Economics, Springer, vol. 21(5), pages 783-801, December.

    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:pal:jorsoc:v:52:y:2001:i:11:d:10.1057_palgrave.jors.2601219. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.