Suppose we are using a marketing simulation model to determine the expected profit under conditions of uncertain customer loyalty.In this case,we should use an optimization model to determine the optimal amount to spend on increasing customer loyalty.

Question

Quizplus · Accepted Answer

Optimization models are used to find the best solution from a set of alternatives under certain conditions, but when dealing with uncertain customer loyalty, a simulation model is more appropriate as it can account for variability and uncertainty in customer behavior, not just optimize under fixed conditions.

Suppose We Are Using a Marketing Simulation Model to Determine