The Application of Utility Theory in the Decision-Making of Marketing Risk Management

摘要

In the increasingly competitive and unpredictable business environment, how to control marketing risk to reduce loss is an important issue in the field of marketing research. On the basis of brief description of marketing risk and basic concept of management, this paper analyzes utility, utility function and utility theory, and illustrates the concrete application of utility theory in marketing risk management decision through an example, and explains some possible problems that may exist in practical application. The conclusion is that utility theory has its theoretical value and advantage in marketing risk management decision, but it still needs further development and improvement in practical application.