Optimal Allocation of Competitive Marketing Efforts Revisited
Optimal Allocation of Competitive Marketing Efforts Revisited
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M = q/Q P = average market price S. ■ competitiors ' advertising outlays excluding brand i's X = average product - quality index p* = i's relative price, i. E. P*"p/P s* = i's relative advertising, i. E. S* » s/S.
X* = i's relative quality, i. E. X* = x/X n = -(9q/9p) (p/q) = i's absolute price elasticity y p9q/3s " i's absolute marginal revenue product of advertising n = i's absolute advertising - sales elasticity a = r„" .. V — = i's absolute product quality elasticity x v. OC/dxy q n * = -(9...m/3p*) (p*/m) = i's market share elasticity with respect to i's relative price n ^ = (9m/9s*) (s*/m) = i's market share elasticity with respect to i's relative advertising outlay.
n^ •= (9m/9x*) (x*/m) ■= i's market share elasticity with respect to i's relative quality Other symbols will be defined when needed.
- 4 - The market share optimization rule Brand i's profit function can be written as IT = pq - qc - s (1) or IT = q(p, s, x) fp - c(q(p, s, x), x)j - s (2) The Dorfman-Steiner theorem Is simply the optimization of equation (2) with respect to absolute price, advertising and quality.
What to read after Optimal Allocation of Competitive Marketing Efforts Revisited?
You can find similar books in the "Read Also" column, or choose other free books by Philippe Naert to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
M = q/Q P = average market price S. ■ competitiors ' advertising outlays excluding brand i's X = average product - quality index p* = i's relative price, i. E. P*"p/P s* = i's relative advertising, i. E. S* » s/S.
X* = i's relative quality, i. E. X* = x/X n = -(9q/9p) (p/q) = i's absolute price elasticity y p9q/3s " i's absolute marginal revenue product of advertising n = i's absolute advertising - sales elasticity a = r„" .. V — = i's absolute product quality elasticity x v. OC/dxy q n * = -(9...m/3p*) (p*/m) = i's market share elasticity with respect to i's relative price n ^ = (9m/9s*) (s*/m) = i's market share elasticity with respect to i's relative advertising outlay.
n^ •= (9m/9x*) (x*/m) ■= i's market share elasticity with respect to i's relative quality Other symbols will be defined when needed.
- 4 - The market share optimization rule Brand i's profit function can be written as IT = pq - qc - s (1) or IT = q(p, s, x) fp - c(q(p, s, x), x)j - s (2) The Dorfman-Steiner theorem Is simply the optimization of equation (2) with respect to absolute price, advertising and quality.
What to read after Optimal Allocation of Competitive Marketing Efforts Revisited?
You can find similar books in the "Read Also" column, or choose other free books by Philippe Naert to read onlineMoreLess
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