Title: The persistence of marketing effects on sales
Authors: Dekimpe, Marnik ×
Hanssens, DM #
Issue Date: 1995
Series Title: Marketing Science vol:14 (Winter) issue:1 pages:1-21
Abstract: Answering the question whether marketing efforts are able to affect long-term trends in sales or other performance measures is essential for the creation of marketing strategies that deliver a sustainable competitive advantage. Persistence modeling is introduced to derive long-term marketing effectiveness from time-series observations on sales and marketing expenditures. First, unit-root tests to determine whether sales are stable or evolving (trending) over time. If they are evolving, the strength of this evolution is examined (univariate persistence) and to what extent it can be related to marketing activity (multivariate persistence). An empirical example on sales and media spending for a chain of home-improvement stores reveals that some, but not all, advertising has strong trend-setting effects on sales. It is argued that traditional modeling approaches would not pick up these effects and, therefore, seriously underestimate the long-term effectiveness of advertising
ISSN: 0732-2399
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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