How does advertising affect loyalty? Using Project Apollo data to investigate the relationship in a new way

Rachel Kennedy, Carl Driesener and Gerald Goodhardt
Ehrenberg-Bass Institute for Marketing Science; Australia

Colin McDonald
Ehrenberg-Bass Institute for Marketing Science and Media Trust, Australia

Leslie Wood
Media Trust LLC; and Leslie Wood Research, Inc., United States

INTRODUCTION

In today's complex multi media environment, the industry is making moves towards passive consumer centric measurement of cross media consumption. While this is a good thing, further development of the metrics that advertisers need to make multi-media decisions and monitor performance is required.

We present the first stage in the development of a cutting edge solution to measure advertising effects. It is grounded in a comprehensive framework, the Dirichlet, that explains much about loyalty and buyer behaviour, and documents the many empirical regularities (Ehrenberg, 1988; Uncles, Ehrenberg, and Hammond, 1995).