Title: Sustained spending and persistent response: A new look at long-term marketing profitability
Authors: Dekimpe, Marnik ×
Hanssens, DM #
Issue Date: 1999
Series Title: Journal of Marketing Research vol:36 issue:4 (Nov.) pages:397-412
Abstract: An intuitively appealing decision rule is to allocate a company's scarce marketing resources to where they have the greatest long-term benefit. This principle, however, is easier to accept than it is to execute, because long-run effects of marketing spending are difficult to estimate. A study addresses this problem by examining the behavior of market response and marketing spending over time and identifies 4 common strategic scenarios: 1. business as usual, 2. hysteresis in response, 3. escalation, and 4. evolving business practice. The study explains and illustrates why each scenario can occur in practice and describes its positive and negative consequences for long-term profitability. Multivariate persistence measures are used to identify which of the 4 strategic scenarios is taking place, and this approach is illustrated in the pharmaceutical and packaged-food industries. The results show that the strategic scenario is a major determinant of marketing effectiveness and long-term profitability
ISSN: 0022-2437
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Centre for Marketing and Consumer Science, Leuven
× corresponding author
# (joint) last author

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