Advertising Cost Interactions and the Optimality of Pulsing

Minhi Hahn and Jin-Sok Hyun
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Minhi Hahn: Korea Advanced Institute of Science and Technology, Department of Management Science, Cheongryang P.O. Box 150, Seoul, Korea
Jin-Sok Hyun: Korea Advanced Institute of Science and Technology, Department of Management Science, Cheongryang P.O. Box 150, Seoul, Korea

Management Science, 1991, vol. 37, issue 2, 157-169

Abstract: Whether pulsing, other than chattering, can be optimal is an important concern to both advertising practitioners and marketing scientists. In this paper, we explicitly incorporate various types of costs to a one-state advertising model to analyze the effect of these costs on the optimal advertising policy. We prove that the interaction of fixed and pulsing costs does make pulsing optimal under a reasonable condition. This result not only identifies an important factor that leads to the optimality of pulsing, but also generalizes the finding obtained by Sasieni (1971).

Keywords: advertising; pulsing; advertising costs (search for similar items in EconPapers)
Date: 1991
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:37:y:1991:i:2:p:157-169

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