Dynamic promotional allocation for multi-products in segmented market under first and repeat purchase behaviour
by P.C. Jha; Prerna Manik; Anshu Gupta
International Journal of Advanced Intelligence Paradigms (IJAIP), Vol. 5, No. 1/2, 2013

Abstract: Promotion plays a vital role in influencing consumer behaviour in favour of the firm's offerings culminating into product trial/adoption/repurchase. Sparse promotional effort resources and shortened product life cycles require that decisions related to promotional effort allocation must be taken judiciously and objectively. In this paper, we formulate and solve an optimisation problem of promotional resource allocation for the multi products of a product line sold across distinctive market segments. The problem is formulated using a diffusion model allowing repeat purchase under budgetary and minimum sales aspiration level constraint on each product under consideration and solved using differential evolution approach. In order to allocate resources dynamically the total planning horizon is divided into multi periods. Resources are re-allocated in each period to each product under consideration in each market segment after analysing the current adoption pattern and market potential. Model applicability is shown with the help of a numerical illustration.

Online publication date: Wed, 30-Jul-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Advanced Intelligence Paradigms (IJAIP):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com