{"title":"Dynamic Advertising-based Goodwill Incorporating Fuzzy Environment in Segment-Specific Market","authors":"Pradeep Kumar, Kuldeep Chaudhary, Vijay Kumar, Vijay Singh","doi":"10.33889/ijmems.2023.8.4.040","DOIUrl":null,"url":null,"abstract":"A new product's introduction to the market is greatly influenced by effective and enough advertising. In this paper, we have considered a problem in which the firm partitions the market into various segments to reduce costs associated with advertising and targets to maximize the total profit. By integrating single channel and differentiated advertising to segmented market, we extend Nerlove-goodwill Arrow's dynamic model in which advertising variables are control variables. It is assumed that the whole available budget is imprecise and fuzzy in nature in order to create a realistic model. Using necessity and possibility constraints, the optimal control model with fuzzy parameters is transformed into crisp form, and the Pontryagin Maximum principle is then used to solve the problem. Numerical examples are provided to support the theoretical analysis.","PeriodicalId":44185,"journal":{"name":"International Journal of Mathematical Engineering and Management Sciences","volume":null,"pages":null},"PeriodicalIF":1.3000,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Mathematical Engineering and Management Sciences","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.33889/ijmems.2023.8.4.040","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENGINEERING, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
A new product's introduction to the market is greatly influenced by effective and enough advertising. In this paper, we have considered a problem in which the firm partitions the market into various segments to reduce costs associated with advertising and targets to maximize the total profit. By integrating single channel and differentiated advertising to segmented market, we extend Nerlove-goodwill Arrow's dynamic model in which advertising variables are control variables. It is assumed that the whole available budget is imprecise and fuzzy in nature in order to create a realistic model. Using necessity and possibility constraints, the optimal control model with fuzzy parameters is transformed into crisp form, and the Pontryagin Maximum principle is then used to solve the problem. Numerical examples are provided to support the theoretical analysis.
期刊介绍:
IJMEMS is a peer reviewed international journal aiming on both the theoretical and practical aspects of mathematical, engineering and management sciences. The original, not-previously published, research manuscripts on topics such as the following (but not limited to) will be considered for publication: *Mathematical Sciences- applied mathematics and allied fields, operations research, mathematical statistics. *Engineering Sciences- computer science engineering, mechanical engineering, information technology engineering, civil engineering, aeronautical engineering, industrial engineering, systems engineering, reliability engineering, production engineering. *Management Sciences- engineering management, risk management, business models, supply chain management.