Browsing by Author "Chin, Shun-Peng"

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Optimal promotional time for maximum sales response with an initial market share in internet marketing
(2011-06-18)
Lin, Chiun-Sin
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Chiang, Chi
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Chin, Shun-Peng
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管理科學系
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Department of Management Science
Most products usually have an initial market share at the beginning in marketing. In order to increase and maximize sales response, sellers can set an optimal promotional time limit. This paper aims to explain how an existing initial market share with vital parameters affects the range and shape of sales response curve to reach optimal promotional time. We use two opposite negative exponential growth functions to build a mathematical model, apply decision calculus to determine parameters, and optimize promotional time limits for maximum sales response. We demonstrate real numerical examples of e-mail marketing by using functions with or without an initial response. Furthermore, we also conduct sensitivity analyses to compare different optimal time limits by various response rates. This paper contributes to the field by providing a sales response model with an initial market share and can be applied to the general one force or two forces cases with vital capacity parameter and exponential growth coefficient to get more elastic, adequate, and complete results.
Optimizing time limits for maximum sales response in Internet shopping promotions
(2011-01-01)
Chiang, Chi
;
Lin, Chiun-Sin
;
Chin, Shun-Peng
;
管理科學系
;
Department of Management Science
Sellers usually set a promotional time limit to ensure that products can be sold as soon as possible in Internet markets. This research attempts to build a decision support system that optimizes the time limit for maximum sales response or profit in Internet shopping promotions. We decompose the effect of time limits into two opposing forces, which are the awareness and urgency of a promotional offer that are depicted as hyperbolic S-shaped functions. Using the decision calculus approach, we can determine the optimal promotional time limit with different input parameters. We illustrate the use of the proposed system with real world examples and conduct some sensitivity analyses. We compare our numerical results from hyperbolic functions with those from simple exponential functions; we find that hyperbolic functions yield more appropriate promotional time limits on Internet. This research contributes to the field of decision support by providing a new approach to determining the optimal time limit for online sales promotions. (C) 2010 Elsevier Ltd. All rights reserved.