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An optimization model for SMS advertising policy based on RFM analysis: Amerchant perspective

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Indexed by:期刊论文

Date of Publication:2009-12-01

Journal:ICIC Express Letters

Included Journals:EI、Scopus

Volume:3

Issue:4

Page Number:1441-1446

ISSN No.:1881803X

Abstract:SMS (short message service) advertising is becoming increasingly animportant marketing approach, however, the current SMS advertising model haslarge limitations on selection of promoted brands and target groups. Based onmerchant's perspective, an optimization policy of SMS advertising is proposed byanalyzing customer purchase history behavior characteristics which includerecent purchase time (R), purchase frequency (F), total amount of purchase (M).This model is a 0-1 integer programming model and can be solved using Lingosoftware packages. Under the prerequisite of satisfying corresponding constraintconditions, the object of the model is to maximize the expected investmentreturn by choose the promoted brands and target groups effectively; an exampleproposed in this paper illustrates the feasibility of the method and thepractical application value. ICIC International ? 2009.

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