Impact of types of functional relationships, decisions, and solutions on the applicability of marketing models

Abstract

I want to complement the review by Leeflang and Wittink [Internat. J. Res. Marketing 17 (2000) 105] by investigating the impact different marketing models have on actual decision-making. Consumer products companies do not frequently apply optimization models because the profit improvements of the determination of the optimal level of a variable like price or advertising budget are small and heavily depend on hardly predictable competitive reactions. Models are more often applied for the differentiation of product attributes or prices to serve the needs of different segments, and the allocation of a budget or effort across customers. The most influential modeling tool is spreadsheet software like Microsoft Excel and the add-in Solver. © 2000 Elsevier Science B.V.