Advertising Response in the Gold and Pray Algorithm: A Critical Assessment

Abstract

Simulations provide a powerful means of teaching a range of lessons from the valuable to the dysfunctional. If we are to maximize the likelihood of positive learning experiences for our students, it is vital that the simulations we use accurately model the phenomena under study. Otherwise, students learn things which are not so, or they learn not to take the simulation seriously. Therefore, it is important that response functions in simulations reproduce the reality they attempt to simulate. This is especially critical in view of the misconceptions students bring with them to the simulation, particularly concerning “familiar” topics such as advertising. Although fami liar as a result of daily exposure, advertising remains mysterious and seemingly all-powerful. Many students have the notion that advertising can accomplish miracles in the marketplace. For these reasons, it as important that the advertising response functions incorporated in business simulations be carefully considered.