Stochastic models of a commonly used consumer marketing tool--a price off or price promotion--are developed. Two cases are considered: first, when the duration of the promotion is unknown to customers, and second, when it is known. The optimal duration is derived in both cases as a function of...

This paper deals with the problem of allocating fixed resources between two types of demands; (a) spot demand; and (b) package (subscription) demand---demand that is satisfied by selling usage rights over a prespecified time period prior to actual consumption. In Model 1, a probabilistic spot...

A market where two groups of brands, premium (higher priced) and private label (lower priced) are sold is considered. It is assumed price is the only indicator of quality. Using hypotheses about consumer behavior in such markets, a model for changes in market share that would result from...