Designing a Model for the Effectiveness of Television Advertisements on Viewers and Increasing Their Satisfaction and Loyalty with the Approach of System Dynamics

Advertising is a powerful marketing tool with the potential to influence people's thoughts and behaviors. This is why it is utilized for various purposes by both large and small businesses. Furthermore, advertising serves as an effective means of conveying information about products, services, or ideas to target audiences. Among the various advertising mediums, television is one of the most prominent. The purpose of this research is to develop a model that enhances the effectiveness of television advertisements in engaging viewers and fostering their satisfaction and loyalty. To achieve this objective, it is essential to prioritize the quality of advertisements and to exert additional effort in this area. Consequently, the need to improve advertising quality has garnered increased attention from advertising managers. Given the complexity of the issue at hand, approaching its components in isolation will hinder our understanding of the overall problem. This applied research aims to assist advertising managers in gaining a comprehensive understanding of the performance of their system components by examining the relationships among the key variables of television advertisements. Ultimately, this will enable them to strategize improvements in advertisement quality, thereby increasing their effectiveness on television viewers.

The current research adopts an applied perspective, utilizing a system dynamics approach for simulation. This technique, rooted in systems thinking, offers a dynamic view and incorporates feedback mechanisms within systems. One of the primary advantages of the system dynamics approach is its ability to consider all elements of a system simultaneously. In this study, our spatial domain is television. We extracted variables influencing the effectiveness of advertisements on viewers from existing research literature, incorporating insights from experts in the field of media. Subsequently, we utilized historical data to identify the relationships between these variables and their initial values. A cause-and-effect diagram was then constructed to illustrate these relationships. Ultimately, we developed a comprehensive model to assess the effectiveness of television advertising. This model was tested under both optimistic and pessimistic scenarios to determine the potential percentage increase in customer acquisition under standard conditions. Consequently, we analyzed and investigated the impact of implementing policies aimed at enhancing the effectiveness of advertising in the future.

The results of the model simulation indicate that the presence of a competitive environment enhances the level of advertising. Consequently, this increase leads to improvements in advertising quality, customer satisfaction, and loyalty, ultimately attracting a larger audience.

For this purpose, a system dynamics approach was employed to model complex structures, such as the relationships among the organization's key parameters. This modeling offers a comprehensive understanding of system dynamics and its behavior, enabling the optimization of performance.As previously mentioned, the primary purpose of advertisements is to enhance profitability. However, the limited availability of resources poses challenges for organizations, leading to increased risks and a decline in quality and consumer satisfaction. To address these limitations, organizations strive to implement effective policies aimed at expanding their target audience.The key aspect to consider is the enhancement in the quality of advertisements, which boosts customer satisfaction and naturally attracts more clients. To this end, a model demonstrating the system's behavior was developed under normal conditions. Subsequently, the system's performance was evaluated based on essential criteria. This model underwent both optimistic and pessimistic scenarios to assess the potential increase in customer acquisition. Additionally, these scenarios evaluated the impact of various components on enhancing customer acquisition. It was observed that fluctuations in the customer acquisition rate and customer attrition rate significantly affected the model's performance. The growth rate of the customer base indicated that the project is progressing in the right direction.This led to enhanced monitoring of the project and greater consumer satisfaction, which would result in increased profitability and, ultimately, higher total revenues. Consequently, if the proposed scenario is implemented, the project's profitability will rise due to improved quality and satisfaction. By applying the results of the proposed strategies at the end of the study period, we can expect to see an increase in cash flow.