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


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).