How Promotions Work: SCAN*PRO-Based Evolutionary Model Building

The basic idea is that to enhance user acceptance it is important that one begins with a relatively simple model, and that published model extensions are to increase the knowledge about “how promotions work” and to provide support for more complex decisions.

Abstract

We provide a rationale for evolutionary model building. The basic idea is that to enhance user acceptance it is important that one begins with a relatively simple model. Simplicity is desired so that managers understand models. As a manager uses the model and builds up experience with this decision aid, she will realize its shortcomings. The model will then be expanded and will lead to the increase of complexity. Evolutionary model building also stimulates the generalization of marketing knowledge. We illustrate this by discussing different extensions of the SCAN*PRO model. The purpose of published model extensions is to increase the knowledge about "how promotions work" and to provide support for more complex decisions. We summarize the generated knowledge about how promotions work, based on this process.