A linear programming approach for determining optimal advertising policy

Wai Ki Ching; Wai On Yuen; Michael K. Ng; Shu Qin Zhang

doi:10.1093/imaman/dpi039

A linear programming approach for determining optimal advertising policy

Wai Ki Ching^*, Wai On Yuen, Michael K. Ng, Shu Qin Zhang

^*Corresponding author for this work

Department of Mathematics

Research output: Contribution to journal › Journal article › peer-review

10 Citations (Scopus)

Abstract

In this paper, we propose a new advertising model which can capture the advertising wear out phenomenon. The objective here is to maximize overall sales. We show how to derive the optimal pulsation advertising strategy. The optimization problem can be formulated as a linear programming problem. Closed-form optimal solution can also be obtained under some conditions. We present numerical examples to illustrate the proposed model and apply the model to practical sales data.

Original language	English
Pages (from-to)	83-96
Number of pages	14
Journal	IMA Journal of Management Mathematics
Volume	17
Issue number	1
DOIs	https://doi.org/10.1093/imaman/dpi039
Publication status	Published - Jan 2006

Scopus Subject Areas

Management Information Systems
Modelling and Simulation
Economics, Econometrics and Finance(all)
Strategy and Management
Management Science and Operations Research
Applied Mathematics

User-Defined Keywords

Advertising model
Advertising wear out phenomenon
Linear programming
Pulsation advertising policy

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10.1093/imaman/dpi039

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title = "A linear programming approach for determining optimal advertising policy",

abstract = "In this paper, we propose a new advertising model which can capture the advertising wear out phenomenon. The objective here is to maximize overall sales. We show how to derive the optimal pulsation advertising strategy. The optimization problem can be formulated as a linear programming problem. Closed-form optimal solution can also be obtained under some conditions. We present numerical examples to illustrate the proposed model and apply the model to practical sales data.",

keywords = "Advertising model, Advertising wear out phenomenon, Linear programming, Pulsation advertising policy",

author = "Ching, {Wai Ki} and Yuen, {Wai On} and Ng, {Michael K.} and Zhang, {Shu Qin}",

note = "Funding Information: The authors would like to thank the anonymous referees and Prof. Ken Darby-Dowman for their very helpful comments and major corrections in revising the paper. This research was supported in part by HKU CRCG Grant Nos 10203408, 10203501, 10203907, 10204436.",

year = "2006",

month = jan,

doi = "10.1093/imaman/dpi039",

language = "English",

volume = "17",

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issn = "1471-678X",

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T1 - A linear programming approach for determining optimal advertising policy

AU - Ching, Wai Ki

AU - Yuen, Wai On

AU - Ng, Michael K.

AU - Zhang, Shu Qin

N1 - Funding Information: The authors would like to thank the anonymous referees and Prof. Ken Darby-Dowman for their very helpful comments and major corrections in revising the paper. This research was supported in part by HKU CRCG Grant Nos 10203408, 10203501, 10203907, 10204436.

PY - 2006/1

Y1 - 2006/1

N2 - In this paper, we propose a new advertising model which can capture the advertising wear out phenomenon. The objective here is to maximize overall sales. We show how to derive the optimal pulsation advertising strategy. The optimization problem can be formulated as a linear programming problem. Closed-form optimal solution can also be obtained under some conditions. We present numerical examples to illustrate the proposed model and apply the model to practical sales data.

AB - In this paper, we propose a new advertising model which can capture the advertising wear out phenomenon. The objective here is to maximize overall sales. We show how to derive the optimal pulsation advertising strategy. The optimization problem can be formulated as a linear programming problem. Closed-form optimal solution can also be obtained under some conditions. We present numerical examples to illustrate the proposed model and apply the model to practical sales data.

KW - Advertising model

KW - Advertising wear out phenomenon

KW - Linear programming

KW - Pulsation advertising policy

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U2 - 10.1093/imaman/dpi039

DO - 10.1093/imaman/dpi039

M3 - Journal article

AN - SCOPUS:29244433525

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VL - 17

SP - 83

EP - 96

JO - IMA Journal of Management Mathematics

JF - IMA Journal of Management Mathematics

IS - 1

ER -

A linear programming approach for determining optimal advertising policy

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