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RULES FOR CHURCH PROMOTION DECISIONS
Author(s) -
Carman James M.
Publication year - 1987
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1987.tb01549.x
Subject(s) - maximization , profit maximization , utility maximization , promotion (chess) , business , profit (economics) , marketing , donation , function (biology) , microeconomics , economics , political science , law , mathematical economics , evolutionary biology , politics , biology , economic growth
This article presents and tests a model that extends our understanding of optimal marketing‐mix decision rules for nonprofit organizations (such as churches) that receive donation income, do not charge fixed prices for their services, and rely heavily on volunteer time as a resource for their operations. Such organizations are likely to employ an objective function of output maximization rather than profit maximization. This change in objective function leads to greater promotional spending than would be true of for‐profit organizations. The paper also highlights the complexities for optimization raised by the role of paid and volunteer staff in promotional activities.