The current chapter is a tentative step toward investigating the allocation of advertising budget between the internet platform and the entity platform according to the long-term and short-term achievement of advertising investment. We provide a decision-making framework on how to allocate the advertising budget to the two platforms for the best results. The integrated effect of advertising investment consists of two parts. Goodwill and customer scale reflect the long-term achievement, and sale profit represents the short-term achievement. We selected some representative feasible investment plans as decision-making units (DMUs), and calculated the values of sale profit, goodwill, and customer scale as three outputs. To determine the best advertising investment plan, we use data envelopment analysis (DEA) model to seek efficient plans, and then determine the best one from those efficient plans through preference investigation and super-efficiency technique.
The authors would like to thank Ministry of Education of China (Program for New Century Excellent Talents in University) and National Natural Science Foundation of China (Grant nos. 71271195, 71121061, and 71110107024) for their financial support.
Yang, F., Yuan, Q., Huang, Z. and Liang, L. (2013), "Using DEA to select the best advertising investment plan", Applications of Management Science (Applications of Management Science, Vol. 16), Emerald Group Publishing Limited, pp. 131-149. https://doi.org/10.1108/S0276-8976(2013)0000016011Download as .RIS
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