University of Twente Student Theses


Integrated Pricing and Advertising at Sundio Group

Jansen, W. (2014) Integrated Pricing and Advertising at Sundio Group.

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Abstract:The aim of this research is to come up with a possibility for modelling the integrated decision making for pricing and advertising at Sundio. The main research question is: “What is an appropriate model for Sundio to support the decision making on both prices and advertisements in order to maximize profit?” In this research we propose a mathematical model which optimizes the pricing and advertising decisions of Sundio. The main benefit of this model compared to the current model used is that it combines the effect of changing the price and changing the CPC in one model. Integrating all the decisions regarding Google AdWords results in improved benefits from Google AdWords since the CPCs are not optimized individually; the model looks for the best combination of CPCs and prices for all AdWords and product groups. To test how the proposed Integrated Pricing and Advertising model performs compared to the models currently used we set up a simulated case study based on real life data. The main conclusion based on the simulated case study is that the Integrated Pricing and Advertising model performs better than the current model used in almost every case.
Item Type:Essay (Master)
ORTEC bv, Zoetermeer, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:01 general works, 31 mathematics
Programme:Industrial Engineering and Management MSc (60029)
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