The Power of Inertia: Conservatism in Marketing Resource Allocation
Marcel Corstjens
INSEAD
Andris Umblijs
McKinsey
Chao Wang
Deloitte
INTRODUCTION
There are two types of marketing-budget decisions:
- The total budget decisions
- The allocation of the budget across various marketing vehicles.
In this study, the authors focus on budget allocation. Determination of total budget tends to be taken at a higher level in the organization and to have fewer upside opportunities (Doyle and Saunders, 1990; Bradley and Kissel, 2006).
It is interesting to note that in most industries, there exists a clear hierarchy in terms of the marketing vehicles deployed. These hierarchies...