This article presents a model for the allocation of an advertising budget to geographic market segments, or territories, when the sales response to advertising in each segment is characterized by a probability distribution. It is shown that allocation decisions that are based on the expected...

Business policy questions frequently involve competitive encounters among several different firms. Oligopoly theory in economics was devised to answer similar questions, but its results so far are largely confined to cases of monopoly (one firm), duopoly (two firms), and many firms (wheat...

The purpose of this paper is to derive a model of advertising effects on the firm's sales. A micromodel is postulated and aggregated across individuals and over time to produce a macromodel of the aggregate sales-advertising relationship for a single product. The micromodel postulated is very...

A new stochastic brand choice model, the Bargain Value Model, is introduced. Using consumer panel data, the model predicts an individual household's probability of purchasing various brands as a function of the prevailing price of those brands. Based on consumer behavior constructs, the model...

In an important study reviewing the literature on econometric studies of the relationship between advertising and sales Clarke (Clarke, Darral G. 1976. Econometric measurement of the duration of advertising effects on sales. J. Marketing Res. 13 (November) 345--357.) concluded that the implied...

This paper considers a multi-firms advertising model under uncertainty of the Nerlove-Arrow type. It is shown (under a Markovian assumption of the advertising process) that the probability of sales for a firm in a multi-firms setting is given by a Poisson distribution with a parameter given by...

This paper describes a branch and bound approach for optimizing a media selection problem, namely, to choose the best set of mailing lists to maximize audience reach. Prompted by a national retailer's interest in more effective and efficient direct mail catalogue distribution, the algorithm...