How should forward-looking managers plan advertising if they envision a product-harm crisis in the future? To address this question, we propose a dynamic model of brand advertising in which, at each instant, a non-zero probability exists for the occurrence of a crisis event, which damages the...

In Markov-switching regression models, we use Kullback-Leibler (KL) divergence between the true and candidate models to select the number of states and variables simultaneously. In applying Akaike information criterion (AIC), which is an estimate of KL divergence, we find that AIC retains too...

Mobile marketing, which involves two- ormulti-way communication and promotion of an offer between a firmand its customers using themobile, a term that refers to themobilemedium, device, channel, or technology, is growing in importance in the retailing environment. It has the potential to change...

Retailers face the last-mile problem of delivering ordered items to customers’ homes. To this end, they increasingly invest in building their own delivery services (ODS). How does this shift to ODS affect customers’ behaviors and sales performance? Why do retailers go beyond their core...

The concept of Integrated Marketing Communications (IMC) emphasizes the role of synergy, which arises when the combined effect of multiple activities exceeds the sum of their individual effects. In this paper, we investigate the effects of synergy on the profitability of IMC programs in...

Companies spend millions of dollars on advertising to boost a brand's image and simultaneously spend millions of dollars on promotion that many believe calls attention to price and erodes brand equity. We believe this paradoxical situation exists because both advertising and promotion are...

A key task of advertising media planners is to determine the best media schedule of advertising exposures for a certain budget. Conceptually, the planner could choose to do continuous advertising (i.e., schedule ad exposures evenly over all weeks) or follow a strategy of pulsing (i.e., advertise...

Online reverse auctions generate real-time bidding data that could be used via appropriate statistical estimation to assist the corporate buyer's procurement decision. To this end, we develop a method, called BidAnalyzer, which estimates dynamic bidding models and selects the most appropriate of...