Advertising for price-sensitive products with multi-attribute considered

Abstract

This study provides a framework for a marketing manager to make advertising decisions for price-sensitive products. One promotion, price discount, is offered at the same time as local advertising and national advertising. Unlike previous studies that mainly considered sales profit as the primary goal, this study considers two other attributes, goodwill and customer scale, in making advertising investments. In all cases, a strategy with larger values of these attributes is better. However, maximising these three attributes simultaneously is difficult or impossible, so managers must balance trade-offs between them. We utilise the stochastic multi-attributes analysis in this paper. This method is a multi-attributes decision support technique based on exploring the weight space, helping managers make optimal advertising decisions regarding these three attributes. A numerical example is presented to illustrate the proposed approach.