Optimal Investment and Marketing Strategies

Over the past decade, innovative technologies have resulted in an extensive growth of new services. Each new service requires a number of management and marketing decisions to be made well in advance of its launch and throughout its entire life cycle.

This book develops mathematical models to facilitate decision-making dealing with technologically innovative services. Specifically, it develops (i) models for optimal pricing strategies of subscription services on monopolistic and duopolistic markets; (ii) an analytical model for optimal investment and optimal pricing strategies for innovative maintenance service contracts; and (iii) a model for targeting customers in marketing campaigns. In addition, the models (i)–(iii) can also be used to forecast an aggregate demand for a new service as well as the service demand for each individual customer.

Contents:

• Introduction
• Literature Review
• Migration of Customers and Targeting Customers for Marketing Campaigns
• Optimal Service Pricing (Single-Period Model)
• Optimal New Service Pricing in Monopoly (Dynamic Model)
• Optimal New Service Pricing in Duopoly (Dynamic Model)
• Optimal Investment and Pricing Strategies for Post-Production Service Contracts

Readership: Professionals, academics and graduate students in operations management, systems engineering, optimization & control theory, and mathematical modeling.
Key Features:

• Presents the first quantitative model for performance-based post-production service contracts resulting in optimal investment and pricing strategies
• Deepens understanding of new service diffusion and patterns of customer migration from a legacy service to a new technological substitute
• Highlights models that provide accurate projections of service demand and ensure efficient targeted marketing campaigns