Optimizing time limits for maximum sales response in Internet shopping promotions

Chi Chiang*, Chiun Sin Lin, Shun Peng Chin

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

Sellers usually set a promotional time limit to ensure that products can be sold as soon as possible in Internet markets. This research attempts to build a decision support system that optimizes the time limit for maximum sales response or profit in Internet shopping promotions. We decompose the effect of time limits into two opposing forces, which are the awareness and urgency of a promotional offer that are depicted as hyperbolic S-shaped functions. Using the decision calculus approach, we can determine the optimal promotional time limit with different input parameters. We illustrate the use of the proposed system with real world examples and conduct some sensitivity analyses. We compare our numerical results from hyperbolic functions with those from simple exponential functions; we find that hyperbolic functions yield more appropriate promotional time limits on Internet. This research contributes to the field of decision support by providing a new approach to determining the optimal time limit for online sales promotions.

Original languageEnglish
Pages (from-to)520-526
Number of pages7
JournalExpert Systems with Applications
Volume38
Issue number1
DOIs
StatePublished - 1 Jan 2011

Keywords

  • Decision calculus
  • Decision support system
  • Hyperbolic functions
  • Internet marketing
  • Promotional time limit
  • Sales response

Fingerprint Dive into the research topics of 'Optimizing time limits for maximum sales response in Internet shopping promotions'. Together they form a unique fingerprint.

Cite this