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Optimal advertising duration for profit maximization 被引量:1
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作者 Adarsh Anand Shakshi Singhal Ompal Singh 《Journal of Management Analytics》 EI 2020年第3期458-480,共23页
The current research elucidates the advertising scheme of automotive innovation by incorporating the various stages of the product life cycle.The study proposes an empirical model for the automotive industry to evalua... The current research elucidates the advertising scheme of automotive innovation by incorporating the various stages of the product life cycle.The study proposes an empirical model for the automotive industry to evaluate a time-point known as a switch-point or a take-off point at which firms should modify the advertising and sales promotion strategies to boost sales volume.The problem applies a time-series innovation diffusion model wherein adoption rate changes when a product enters a growth stage and then again when the company stops the advertising campaign in the maturity stage.The present paper develops a profit maximization problem,which optimizes the overall advertising duration and advertising take-off point.A numerical illustration is provided using the actual sales data of automobile industries,and sensitivity analysis is further performed to validate the effect of critical parameters on the optimization problem. 展开更多
关键词 automotive industry advertising take-off point optimal advertising decisions profit maximization product life cycle stages switch-point technology diffusion
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