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Multi-step newsvendors revisited: targeted marketing investment and informativeness

Author

Listed:
  • Elia Balugani

    (University of Modena and Reggio Emilia (Italy, Modena))

  • Antonio Coruzzolo

    (University of Modena and Reggio Emilia (Italy, Modena))

  • Francesco Lolli

    (University of Modena and Reggio Emilia (Italy, Modena))

  • Yacine Rekik

    (EM - EMLyon Business School)

  • Aris Syntetos

    (Cardiff University)

Abstract

We study a retailer of short-life products facing a season with two ordering opportunities. A planned targeted marketing campaign executed immediately before the second opportunity can reduce second-period demand variance. The retailer must decide whether to invest and how much to order in each period. We formulate the problem as a two–period newsvendor and solve it with dynamic programming. A scenario analysis shows that targeted variance reduction is effective unless the first order is substantially oversized or the campaign is very costly. We also provide a benchmark comparison (no–marketing), quantify miscommunication risks, and examine how the relative lengths of the two periods affect performance.

Suggested Citation

  • Elia Balugani & Antonio Coruzzolo & Francesco Lolli & Yacine Rekik & Aris Syntetos, 2026. "Multi-step newsvendors revisited: targeted marketing investment and informativeness," Post-Print hal-05672267, HAL.
    • Handle: RePEc:hal:journl:hal-05672267
    DOI: 10.1080/00207543.2026.2683882
    as

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