USING AN UNCERTAINTY MODEL TO ASSESS SALES RESPONSE TO ADVERTISING

John U. Farley; Charles S. Tapiero

doi:10.1111/j.1540-5915.1981.tb00096.x

USING AN UNCERTAINTY MODEL TO ASSESS SALES RESPONSE TO ADVERTISING

John U. Farley, Charles S. Tapiero

Finance and Risk Engineering

Research output: Contribution to journal › Article › peer-review

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)
Pages (from-to)	441-455
Number of pages	15
Journal	Decision Sciences
Volume	12
Issue number	3
DOIs	https://doi.org/10.1111/j.1540-5915.1981.tb00096.x
State	Published - Jul 1981

Keywords

Advertising
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

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10.1111/j.1540-5915.1981.tb00096.x

Cite this

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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.",

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author = "Farley, {John U.} and Tapiero, {Charles S.}",

year = "1981",

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N2 - 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.

AB - 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.

KW - Advertising

KW - Learning Models

KW - Linear Statistical Models

KW - Stochastic Processes.

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ER -

USING AN UNCERTAINTY MODEL TO ASSESS SALES RESPONSE TO ADVERTISING

Abstract

Keywords

ASJC Scopus subject areas

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