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Consumer Behaviour and Optimal Advertising
Authors:Bertil Näslund
Institution:1.Stockholm School of Economics,Stockholm,Sweden
Abstract:Using Nicosia's formulation of consumer behaviour, optimal advertising strategies are derived. Other studies, using empirical data, have shown that advertising should be concentrated at the early part of the product life cycle and the paper discusses what assumptions about consumer behaviour must be made to obtain that results. Specifically, it is shown under what conditions pulsing advertising campaigns are optimal.
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