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marketing budget, marketing dynamics,kalman filter, two-sided markets


  1. Shrihari sridhar
  2. murali k. Mantrala
  3. prasad a.naik
  4. esther thorson




    studies address the marketing budgeting problems of platform firms operating in
    two-side markets with cross- market network effects,such that demand from one
    customer group in the platfrom influences the demand from the other customer
    groub. Yet such firm (e.g., newspapers whose customers are both subscribes and
    advertisers) are prevalent in the marketplace and invest significantly in
    marketing. To enable such firm to make effective marketing decisions, the authors
    delineate the desired features of a platform firm’s marketing
    response model, specify a nwe response model, and validate it using market data
    a from local newspaper. The result show that the firm faces reinforcing
    cross-market effect, its demand of both groups depends on maarketing
    investment, and the model exhibitsgood forecasting capability. The authors use
    the estimated response model to determine optimal marketing investments over a
    finite planning horizon and find that the firm should significantly increase
    the nwesroom and sales force investments. With this model-based recommendation,
    the firms management in creased its newromm budged by 18%. Further normative
    analysis sheds ligh on how cross-market and carryover effects alter classsical
    one-side marketing budget in rules


    Vol 48, Nomor 06, Tahun 2011


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