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Optimum Advertising Pulsation Strategies: A Dynamic Programming Approach, Hongkai Zhang
Optimum Advertising Pulsation Strategies: A Dynamic Programming Approach, Hongkai Zhang
Doctoral Dissertations
This study, using the dynamic programming approach, has addressed the problem of optimally allocating a fixed advertising budget of a monopolistic firm over a planning horizon comprised of n equal periods to maximize two popular measures of advertising performance: (1) profits related to the advertising effort (discount factor r = 0), and (2) present value of profits related to the advertising effort (discount factor r > 0).
Two dynamic programming models that use the modified Vidale-Wolfe model to represent sales response to advertising are formulated with respect to whether the time value of money is considered. For a planning horizon comprised …