A dynamic approach for brand innovation strategy’s implementation timing considering consumer purchase intention

When operating their products, to sustain a competitive edge in the market, enterprises often employ brand innovation strategies. The propensity of consumers to make purchases is a pivotal metric for weighing product profitability. This paper delves into the impact of brand innovation strategies on consumer purchasing intentions by categorizing consumer groups using the Recency Frequency Monetary (RFM) framework. Concurrently, we employ Markov chain to model the evolution of consumer group proportions over time. Utilizing this model as a foundation, the study leverages dynamic programming to investigate the optimal timing and execution of varied brand innovation tactics to maximize profitability. Furthermore, we examine the precise application of brand innovation strategies at different developmental stages, offering strategic insights for businesses. The findings offer valuable guidance for the effective implementation of brand innovation strategies within enterprises.