Modelling Purchases As A Function Of Advertising

This article describes the preliminary studies of the effect of advertising and promotion on purchases.

Modelling Purchases as a Function of Advertising and Promotion

Flemming HansenLotte Yssing HansenandLars GrnholdtCopenhagen Business School

Introduction

Since the 1960s (Grnholdt, 1990) there has been great interest in using different models to describe and explain the effects of advertisements on purchases. The interest is seen from both the advertisers' and the ad agencies' point of view. The ad agencies have an interest in giving their customers greater assurance of the strategies used, while the advertisers may want to see documentation which shows them that their 'investment' in the different media yields a revenue. Many researchers...

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