Optimal dynamic marketing-mix policies for frequently purchased products and services versus consumer durable goods: A generalized analytic approach

Hani I. Mesak, Abdullahel Bari and T. Selwyn Ellis

European Journal of Operational Research, 2020, vol. 280, issue 2, 764-777

Abstract: This paper deals with the qualitative characterization of optimal pricing and advertising policies together with the optimal ratio of the advertising elasticity of demand to its price elasticity over time. The problem is studied for frequently purchased products and services (FPS) as well as consumer durable goods (CDG) in both monopolistic and duopolistic markets. Demand dynamics, cost learning and discounting of future profits are taken into consideration. In addition, both the open-loop and feedback methodologies are pursued to characterize and compare the derived optimal policies.

Keywords: OR in marketing; Marketing-mix; FPS and CDG dynamic models; Maximum principle; Differential games (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:280:y:2020:i:2:p:764-777

DOI: 10.1016/j.ejor.2019.07.040

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