Multifractal wavelet dynamic mode decomposition modeling for marketing time series

TL;DR

This paper introduces a multifractal wavelet dynamic mode decomposition approach to analyze marketing time series, aiming to improve understanding and forecasting of brand sales and prices across different time scales.

Contribution

It combines dynamic mode decomposition with wavelet analysis to model marketing time series, addressing the impact of time scales on sales persistence and forecasting accuracy.

Findings

Effective modeling of sales and price data across multiple time scales.

Insights into how brand characteristics influence sales persistence.

Enhanced forecasting capabilities for marketing time series.

Abstract

Marketing is the way we ensure our sales are the best in the market, our prices the most accessible, and our clients satisfied, thus ensuring our brand has the widest distribution. This requires sophisticated and advanced understanding of the whole related network. Indeed, marketing data may exist in different forms such as qualitative and quantitative data. However, in the literature, it is easily noted that large bibliographies may be collected about qualitative studies, while only a few studies adopt a quantitative point of view. This is a major drawback that results in marketing science still focusing on design, although the market is strongly dependent on quantities such as money and time. Indeed, marketing data may form time series such as brand sales in specified periods, brand-related prices over specified periods, market shares, etc. The purpose of the present work is to investigate some marketing models based on time series for various brands. This paper aims to combine the dynamic mode decomposition and wavelet decomposition to study marketing series due to both prices, and volume sales in order to explore the effect of the time scale on the persistence of brand sales in the market and on the forecasting of such persistence, according to the characteristics of the brand and the related market competition or competitors. Our study is based on a sample of Saudi brands during the period 22 November 2017 to 30 December 2021.