Understanding the Memory Effects in Pulsing Advertising

Operations Research, Forthcoming

31 Pages Posted: 4 Feb 2015  

Ashwin Aravindakshan

University of California, Davis

Prasad A. Naik

University of California, Davis

Date Written: February 2, 2015

Abstract

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.

Keywords: Memory effects, Awareness formation, Pulsing advertising, Hamiltonian, Lambert W, Delay differential equations

Suggested Citation

Aravindakshan, Ashwin and Naik, Prasad A., Understanding the Memory Effects in Pulsing Advertising (February 2, 2015). Operations Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2559579

Ashwin Aravindakshan (Contact Author)

University of California, Davis ( email )

One Shields Avenue
Davis, CA 95616
United States

HOME PAGE: http://ashwin.faculty.ucdavis.edu

Prasad A. Naik

University of California, Davis ( email )

One Shields Avenue
Davis, CA 95616
United States

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