Quantifying the ripple: word-of-mouth and advertising effectiveness

In this article the authors demonstrate how a customer lifetime value approach can provide a better assessment of advertising effectiveness that takes into account postpurchase behaviors such as word-of-mouth.

Quantifying the Ripple: Word-of-Mouth and Advertising Effectiveness

John E. Hogan Strategic Pricing Group

Katherine N. Lemon Carroll School of Management, Boston College

Barak Libai Faculty of Management, Tel-Aviv University