Abstract
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) |
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Pages (from-to) | 441-455 |
Number of pages | 15 |
Journal | Decision Sciences |
Volume | 12 |
Issue number | 3 |
DOIs | |
State | Published - Jul 1981 |
Keywords
- Advertising
- Learning Models
- Linear Statistical Models
- Stochastic Processes.
ASJC Scopus subject areas
- General Business, Management and Accounting
- Strategy and Management
- Information Systems and Management
- Management of Technology and Innovation