Details

Autor(en) / Beteiligte

• Reddy, Puduru V.
• Wrzaczek, Stefan
• Zaccour, Georges

Titel

Quality effects in different advertising models - An impulse control approach

Ist Teil von

• European journal of operational research, 2016-12, Vol.255 (3), p.984-995

Ort / Verlag

Amsterdam: Elsevier B.V

Erscheinungsjahr

2016

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• •We integrate quality in classical dynamic optimal control models of advertising.•Design quality deteriorates over time, and is improved by costly investments.•Investments is quality are made at pre-determined frequency.•Varying frequency is assessed for Vidale–Wolfe, Nerlove–Arrow and Ozga models.•Differences and similarities between the three models are highlighted. In this paper, we integrate quality as a control variable in three classical dynamic optimal control models of advertising, namely, Nerlove–Arrow, Vidale–Wolfe and Ozga models. Quality refers to design quality, which may deteriorate over time. We assume that decisions in quality improvement can only be made at some exogenously given instants of time, and consequently we use the formalism of impulse optimal control to determine optimal advertising and quality investments. We report numerical results for the three models and discuss the impact of adding quality on the results.