Feature Article—Aggregate Advertising Models: The State of the Art
TLDR
A review of aggregate models developed on a priori grounds brings out similarities and differences among those of Vidale and Wolfe, Nerlove and Arrow, Little, and others and identifies ways in which the models agree or disagree with observed phenomena.Abstract:
Aggregate advertising models relate product sales to advertising spending for a market as a whole. Although many models have been built, they frequently contradict each other and considerable doubt exists as to which models best represent advertising processes. An increasingly rich literature of empirical studies helps resolve these issues by revealing major advertising phenomena that models should encompass. These include sales responding upward and downward at different rates, steady state response that can be concave or S-shaped and can have positive sales at zero advertising, sales affected by competitive advertising; and advertising dollar effectiveness that can change over time. A review of aggregate models developed on a priori grounds brings out similarities and differences among those of Vidale and Wolfe, Nerlove and Arrow, Little, and others and identifies ways in which the models agree or disagree with observed phenomena. A Lanchester-motivated structure generalizes many features of these model...read more
Citations
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Journal ArticleDOI
How Advertising Works: What Do We Really Know?
Demetrios Vakratsas,Tim Ambler +1 more
TL;DR: In this article, the authors review more than 250 journal articles and books to establish what is and should be known about how advertising affects the consumer, and deduce a taxonomy of models.
Journal ArticleDOI
An Evaluation Cost Model of Consideration Sets
Jay Hauser,Birger Wernerfelt +1 more
TL;DR: In this article, the authors provide analytical expressions for these decision criteria and present four aggregate implications of the model: distributions of consideration set sizes, order-of-entry penalties, dynamic advertising response, and competitive promotion intensity.
Journal ArticleDOI
Advertising Exposure, Loyalty, and Brand Purchase: A Two-Stage Model of Choice:
TL;DR: This article found that a nonlinear response to repetitive ad exposure, mediated by brand loyalty, can occur in either or both of the two types of ad exposure modes: linear and nonlinear.
Journal ArticleDOI
Understanding the Impact of Synergy in Multimedia Communications
Prasad A. Naik,Kalyan Raman +1 more
TL;DR: The authors investigate the theoretical and empirical effects of synergy by extending a commonly used dynamic advertising model to multimedia environments and illustrate how advertisers can estimate and infer the effectiveness of and synergy among multimedia communications by applying Kalman filtering methodology.
Book
Market share rewards to pioneering brands: an empirical analysis and strategic implications
TL;DR: In this paper, an empirical analysis indicates that the order of entry of a brand into a consumer product category is inversely related to its market share, and the coefficients of the entry, advertising, and positioning variables are significant in a regression analysis on an initial sample of 82 brands across 24 categories.
References
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Book ChapterDOI
Optimal advertising policy under dynamic conditions
Marc Nerlove,Kenneth J. Arrow +1 more
TL;DR: In this paper, the Dorfman-Steiner model is extended to the situation in which present advertising expenditures affect the future demand for the product, and the model is used to predict future demand.
Journal ArticleDOI
Econometric Measurement of the Duration of Advertising Effect on Sales
TL;DR: A survey of the econometric literature is undertaken to determine the duration of cumulative advertising effect on sales as discussed by the authors, and the surveyed studies yield conflicting estimates of the duration interval of the effect.
Journal ArticleDOI
An Operations-Research Study of Sales Response to Advertising
M. L. Vidale,H. B. Wolfe +1 more
TL;DR: In this paper, a simple model of the interaction of advertising and sales is described that is consistent with the results of controlled experiments performed on a large number of products and several media.