Understanding the Memory Effects in Pulsing Advertising

• 成果类型: Article
• 署名作者: Aravindakshan, Ashwin; Naik, Prasad A.
• 署名单位: University of California System; University of California Davis
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.2014.1339
• 发表日期: 2015
• 页码: 35-47
• 关键词: Nerlove-Arrow model; consumer memory; wearout; IMPACT; tracking; adpuls; shape

摘要

Extant models assume that awareness decline commences instantly. In contrast, we incorporate the possibility that awareness declines with a delay due to the memory for advertisements. To this end, we use delay differential equations to understand the evolution of awareness in the presence of ad memorability. This extended model generates optimal advertising policies that include the even spending policy, blitz policy, and various cyclic pulsing policies, depending on whether ad memorability exceeds a critical threshold. The extended model not only unifies the various patterns of advertising spending over time, but also augments the prior research by furnishing the optimality of pulsing advertising. Thus ad memorability could drive pulsing. We discuss the implications for practicing managers and identify avenues for future researchers.