Analysis of marketing mix interaction effects and interdependencies: a normative approach

Marc Logman and Wilfried Pauwels
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Marc Logman: EHSAL (Business School), Stormstraat 2, 1000 Brussels, Belgium, Postal: EHSAL (Business School), Stormstraat 2, 1000 Brussels, Belgium
Wilfried Pauwels: UFSIA (University of Antwerp), Prinsstraat 13, 2000 Antwerpen, Belgium, Postal: UFSIA (University of Antwerp), Prinsstraat 13, 2000 Antwerpen, Belgium

Managerial and Decision Economics, 1998, vol. 19, issue 6, 343-353

Abstract: This paper gives a general, theoretical treatment of the interdependency between price and communication expenditures. We analyze how interaction effects (for example the impact of communication on the sales sensitivity to price changes) affect the optimal marketing mix structure (for example the impact of communication expenditures on the optimal price). Moreover, necessary and sufficient conditions are derived for the optimal price to be independent of the communication expenditures and|or for the optimal communication expenditures to be independent of price. © 1998 John Wiley & Sons, Ltd.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:19:y:1998:i:6:p:343-353

DOI: 10.1002/(SICI)1099-1468(199809)19:6<343::AID-MDE884>3.0.CO;2-X

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