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Managing Blood Donations with Marketing

Author

Listed:
  • Ashwin Aravindakshan

    (Graduate School of Management, University of California, Davis, Davis, California 95616)

  • Olivier Rubel

    (Graduate School of Management, University of California, Davis, Davis, California 95616)

  • Oliver Rutz

    (Michael G. Foster School of Business, University of Washington, Seattle, Washington 98195)

Abstract

Blood banks rely on marketing to encourage donors to give blood. Many, if not most, blood banks in the United States are community-based not-for-profit organizations with limited marketing budgets. As a result, blood banks increasingly use novel and inexpensive online media, i.e., paid , owned , and earned (POE) media, in their marketing efforts. We propose a dynamic model to help blood bank marketing managers understand how blood donations can be managed via online POE media. We analytically characterize the optimal forward-looking paid media strategies, taking into account the asymmetric costs related to shortage and excess of blood, as well as the possibility of a cost-free target donation zone. We detail new advertising resource allocation rules for blood banks and show when traditional allocation recommendations do not apply. Additionally, we discover that under certain circumstances, owned/earned media activities hurt the blood bank’s performance, despite being (predominantly) free. We validate our analytical model by using daily donation data from a community-based blood bank and measure the effects of POE media activities on the level of blood donated.

Suggested Citation

  • Ashwin Aravindakshan & Olivier Rubel & Oliver Rutz, 2015. "Managing Blood Donations with Marketing," Marketing Science, INFORMS, vol. 34(2), pages 269-280, March.
    • Handle: RePEc:inm:ormksc:v:34:y:2015:i:2:p:269-280
    DOI: 10.1287/mksc.2014.0892
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    References listed on IDEAS

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    Cited by:

    1. Shi, Jianmai & Chen, Wenyi & Verter, Vedat, 2023. "The joint impact of environmental awareness and system infrastructure on e-waste collection," European Journal of Operational Research, Elsevier, vol. 310(2), pages 760-772.
    2. Leipnitz, Sigrun & de Vries, Martha & Clement, Michel & Mazar, Nina, 2018. "Providing health checks as incentives to retain blood donors — Evidence from two field experiments," International Journal of Research in Marketing, Elsevier, vol. 35(4), pages 628-640.
    3. Chua, Geoffrey A. & Senga, Juan Ramon L., 2022. "Blood supply interventions during disasters: Efficiency measures and strategies to mitigate volatility," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).

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