Experiments on the Value of Information in Simulated Marketing Environments

Experiments on the Value of Information in Simulated Marketing Environments

Experiments on the Value of Information in Simulated Marketing Environments

Experiments on the Value of Information in Simulated Marketing Environments

Excerpt

Marketing Science Institute's book on Promotional Decision Making: Practice and Theory was published in 1964. Some basic problems in the determination of the firm's promotional mix were analyzed, and with prescriptive guidelines--in the form of mathematical models--for increasing the effectiveness of promotional decisions.

As pointed out in that book, lack of application of mathematical models to promotional decision making may be due largely to difficulties in using partially reliable information about markets and competitors.

The present research began in an effort to learn more about the behavioral processes by which decision makers acquire and use information. Various decision models are currently available for indicating how decision makers should acquire and use information to assess risk and to reduce uncertainty; but our purpose was to use these models as a first approximation in the development of a behavioral theory of decision making under uncertainty. This represents an extension of an experimental gaming approach, used earlier in a series of studies of consumer buying.

ACKNOWLEDGEMENTS

We are indebted to the people who served as subjects in the decision exercises, and particularly for the cordial cooperation extended by the Sales and Marketing Executives organization. Likewise, the various umpiring tasks and data analyses by Terry Watson, John Purnell, and John McClenahan of the University of Pennsylvania were useful.

Michael Halbert, Frank Carmone, Barbara Capron, Wilma Wilt, of the Marketing Science Institute were quite helpful, as were . . .

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