Homework Question on Linear Programming
- Please answer both questions and use current sources. Should not be older than 7 years
- What benefit would be gained by utilizing linear programming (LP) for marketing research?
- Discuss and provide a basic example of how LP can be used for marketing and/or consumer research.
Homework Answer on Linear Programming
What benefit would be gained by utilizing linear programming (LP) for marketing research?
According to Vanderbei (2008) defines linear programming to be a mathematical method that is used to unravel concrete problems using linear functions. He argues that the variables that are used in the linear programs rely on a number of constraints, and the solution is often targeted to minimizing the cost or maximizing the profit. Linear programming as a technique helps in decision-making pertaining resource allocation. The resource allocations are referred to as constraints.
In marketing research, linear programming is used in helping researchers to establish the best time to conduct interviews. Linear programming models are used to determine the interviewing plan that can maximize the general response rate, whereas providing suitable representation across a variety of household characteristics and demographics (Vanderbei, 2008).
Additionally, linear programming can be used in market research to find out the best product or services that can be marketed to consumers. Before most companies release their new products to the market, they often conduct some research in order to establish the existing levels of demand. Then, they estimate and forecast the potential demand so as to ensure that their products or services are needed (Luenberger & Ye, 2008).