Implications of a probabilistic “random walk” model of incremental sales response to advertising are developed for various timing patterns of advertising expenditures. Maximum likelihood procedures for assessing advertising effectiveness and for estimating a decay (forgetting) rate are developed and applied to artificial data of known configuration and are used to assess the impact over time of a brochure program on mail‐order sales. Results are also compared to those from alternative models involving various lag patterns in advertising effects.
|Original language||English (US)|
|Number of pages||15|
|State||Published - Jul 1981|
- Learning Models
- Linear Statistical Models
- Stochastic Processes.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Strategy and Management
- Information Systems and Management
- Management of Technology and Innovation