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Article: A Stochastic Optimization Model for Consecutive Promotion

TitleA Stochastic Optimization Model for Consecutive Promotion
Authors
KeywordsConsecutive promotion
Customer behavior
Markov process
Stochastic dynamic programming
Issue Date2008
PublisherNCTU Press. The Journal's web site is located at http://www.cc.nctu.edu.tw/~qtqm/
Citation
Quality Technology & Quantitative Management, 2008, v. 5 n. 4, p. 403-414 How to Cite?
AbstractNowadays in business environment, marketing competitiveness is as demanding as ever. To survive under keen competitions, industries must keep acquiring customers and make them loyal while maximizing profit from their service subscription or product purchasing. Intensive research works have been done in answering when and what kind of promotions should be used under limited marketing communication resources to maintain a perpetual generation of revenue. In this paper, we investigate the advantages in consecutive promotion based on the framework of the model proposed in Ching et al. [1]. The customers’ behavior is modelled by using a Markov chain and we aim at maximizing the expected profit using stochastic dynamic programming. We find that a multi-period promotion strategy is better than the strategy of applying several single-period promotions in our tested examples.
Persistent Identifierhttp://hdl.handle.net/10722/58950
ISSN
2015 Impact Factor: 0.627
2015 SCImago Journal Rankings: 0.481

 

DC FieldValueLanguage
dc.contributor.authorLeung, HYen_HK
dc.contributor.authorChing, WKen_HK
dc.contributor.authorLeung, IKCen_HK
dc.date.accessioned2010-05-31T03:40:14Z-
dc.date.available2010-05-31T03:40:14Z-
dc.date.issued2008en_HK
dc.identifier.citationQuality Technology & Quantitative Management, 2008, v. 5 n. 4, p. 403-414en_HK
dc.identifier.issn1684-3703-
dc.identifier.urihttp://hdl.handle.net/10722/58950-
dc.description.abstractNowadays in business environment, marketing competitiveness is as demanding as ever. To survive under keen competitions, industries must keep acquiring customers and make them loyal while maximizing profit from their service subscription or product purchasing. Intensive research works have been done in answering when and what kind of promotions should be used under limited marketing communication resources to maintain a perpetual generation of revenue. In this paper, we investigate the advantages in consecutive promotion based on the framework of the model proposed in Ching et al. [1]. The customers’ behavior is modelled by using a Markov chain and we aim at maximizing the expected profit using stochastic dynamic programming. We find that a multi-period promotion strategy is better than the strategy of applying several single-period promotions in our tested examples.-
dc.languageengen_HK
dc.publisherNCTU Press. The Journal's web site is located at http://www.cc.nctu.edu.tw/~qtqm/-
dc.relation.ispartofQuality Technology and Quantitative Managementen_HK
dc.subjectConsecutive promotion-
dc.subjectCustomer behavior-
dc.subjectMarkov process-
dc.subjectStochastic dynamic programming-
dc.titleA Stochastic Optimization Model for Consecutive Promotionen_HK
dc.typeArticleen_HK
dc.identifier.emailLeung, HY: obliging@hkusua.hku.hken_HK
dc.identifier.emailChing, WK: wching@HKUCC.hku.hken_HK
dc.identifier.authorityChing, WK=rp00679en_HK
dc.description.naturelink_to_OA_fulltext-
dc.identifier.hkuros153343en_HK
dc.publisher.placeTaiwan, Republic of China-

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