Estimating advertising effects on sales in a competitive setting

Over the last several decades, advertising effects on sales have been studied without appropriately taking into consideration competitors' advertising activities.

estimating advertising effects on sales in a competitive setting

Boonghee Yoo Hofstra UniversityRujirutana Mandhachitara Long Island University

The longitudinal analysis of the relationship between advertising spending and sales generated has a distinguished history facilitated in large part by a court case that brought the Lydia Pinkham Company's annual medicine advertising-sales data for the years 1907-1960 into the public domain. Much valuable work on the advertising-sales relationship on the Pinkham data was done by Palda (1964) who demonstrated for the first time the dynamic effect of advertising on sales...

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