Capitalizing on Game Theory for Optimal Marketing Decision in Service Industry: Evidence From Telecommunication Industry in Nigeria

Abstract

This article aims to capitalize on game theoretic techniques for optimal service marketing decision based on existing literature review. The study collated relevant literature and reviewed the relationship that exists between game theory and marketing mix—product, price, place, and promotion within the Telecommunication industry. Using the game theory techniques—prisoner’s dilemma, Cournot model, Bertrand model, quasi-game model, Stackelberg model for making marketing decisions—the article shows that there is a consensus among scholars that game theoretic techniques facilitate product, pricing, promotion, and distribution decision in the service industry. In addition, an integrated marketing mix model was developed to support this study.