Optimal Goodwill Path to Introduce a New Product

S. Mosca and B. Viscolani
Additional contact information
S. Mosca: University of Padova
B. Viscolani: University of Padova

Journal of Optimization Theory and Applications, 2004, vol. 123, issue 1, No 7, 149-162

Abstract: Abstract We consider the problem of determining an optimal goodwill path for the introduction of a new product in a market, while looking for the maximum foreseen profit. The foreseen revenue depends on the product introduction time and on the goodwill level at the same time. We focus on the advertising costs associated with the goodwill evolution and assume that the cost function possesses some rather general features which are shared by the cost functions of the Nerlove-Arrow type models. The dynamic optimization problem is discussed in the calculus of variations framework. A few examples associated with special cost functions are discussed in detail.

Keywords: Marketing; goodwill; new product introduction; calculus of variations (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1023/B:JOTA.0000043995.54900.1a Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joptap:v:123:y:2004:i:1:d:10.1023_b:jota.0000043995.54900.1a

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10957/PS2

DOI: 10.1023/B:JOTA.0000043995.54900.1a

Access Statistics for this article

Journal of Optimization Theory and Applications is currently edited by Franco Giannessi and David G. Hull

More articles in Journal of Optimization Theory and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().