Advertising Cycling to Manage Exclusivity Loss in Fashion Styles

• 成果类型: Article
• 署名作者: Bruce, Norris I.; Krishnamoorthy, Anand; Prasad, Ashutosh
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; State University System of Florida; University of Central Florida; University of California System; University of California Riverside
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.2022.2376
• 发表日期: 2022
• 页码: 3125-3142
• 关键词: limited edition; MODEL; sales; optimization; uncertainty; cycles; IMPACT

摘要

This paper uses dynamic optimization to study the optimal advertising of fash-ion products over time. For fashion products, brand advertising and exclusivity are impor-tant sales drivers. Therefore, we propose a dynamic model of the sales of multiple styles of a fashion brand based on these variables. The model is estimated using a particle filter method on data from two fashion categories (handbags and sunglasses) and has good fit and prediction. We also derive explicit analytical solutions of the optimal, closed-loop advertising control and use it to explain advertising and fashion cycles. A managerial pre-scription is that advertising cycling should be out of phase with sales, for example, trend down when fashion sales is trending up. Thus, advertising flattens the fashion sales cycle over time rather than reinforcing it.