Skip to main content
Jun 5

Investment Decision Making in Improving Multiple Marketing Channels

Location:

Gerri C. LeBow Hall
501
3220 Market Street
Philadelphia, PA 19104

The process of channel structure improvement is regarded as a complex problem for companies with multiple sales channels. In order to achieve increasing profitability, such companies need to address the strategic issue of effective allocation of their limited budgetary resources among already established, alternate sales channels. In this dissertation, I address a channel-level profit analysis through an integration of operations and marketing perspective, to ultimately provide a systematic procedure for optimal investment decision in channel improvement. First, I investigate the customers’ criteria in choosing sales channels in a so-called omni-channel setting. Then, I use an analytic model to quantify the customers’ inputs. Next, incorporating these findings, I develop a mathematical model for analyzing benefits and operational costs associated with each specific channel. By doing so, I propose a new measurement for budget allocation decision across various sales channels. Later, I implement the model using a company’s data, and demonstrate the practicability of the methodology. I further provide a comprehensive analysis on the effect of firm’s “cycle service level” and “demand uncertainty” on the improvement investment decisions.

Many thanks to Yasamin’s dissertation committee: • Committee Chair – Fariborz Y. Partovi, Ph.D. – Professor – Drexel University • Committee Co-Chair: Avijit Banerjee, Ph.D. - Professor – Drexel University • Committee Member: Seung-Lae Kim, Ph.D - Professor- Drexel University • Committee Member: Bert Rosenbloom, Ph.D. - Professor – Drexel University • Committee Member: Rolph Anderson, Ph.D. - Professor – Drexel University

PhD Candidate