Evaluating the Impact of Advertising Media Plans: A Model of Consumer Purchase Dynamics Using Single-Source Data
We propose a model to analyze the impact of advertising media plans and point-of-purchase marketing variables on a brand's market performance. Our model integrates brand choice, purchase incidence, and exposure behavior within a nonstationary stochastic framework. Moreover, it considers various aspects of consumer heterogeneity including individual differences in loyalty levels, purchase rates, and exposure probabilities for a population of consumers. The integrated model provides a relationship of advertising exposures from media plans, and other marketing variables, to measures of a brand's performance that include market share, penetration and depth of repeat patterns over time. In this paper, we focus on a multi-brand model formulation and stress its application to the analysis of advertising media plans. Based on single-source UPC scanner panel data for a frequently purchased product category, we provide an empirical test of the model. In this context, our analyses show that the model provides a good fit to the empirical data as well as accurate forecasts in hold-out predictive tests.
Volume (Year): 10 (1991)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Web page: http://www.informs.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:10:y:1991:i:2:p:111-130. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If references are entirely missing, you can add them using this form.