Lead effects in advertising and marketing decisions

Peter Doyle and John Saunders

This article discusses lead effects: the pre-emptive behaviour that takes place when consumers, suppliers or competitors anticipate a change in the marketing mix (e.g.

Lead Effects in Advertising and Marketing Decisions

Peter DoyleandJohn Saunders University of Warwick

Just as ignoring the lagged effects of advertising would result in an underestimate of the effectiveness of the expenditure, so ignoring lead effects results in an overestimate of its impact.

Lagged effects

Advertisers have long recognised that marketing expenditures have lagged effects – not all the results are seen in the period in which the expenditure occurs, but rather the effects may influence consumers several periods later. The significance is that if managers fail to allow for lag effects the impact of the...

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