Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling
Are persistent marketing effects most likely to appear right after the introduction of a product? The authors give an affirmative answer to this question by developing a model that explicitly reports how persistent and transient marketing effects evolve over time. The proposed model provides manager...
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sg-smu-ink.lkcsb_research-58372016-01-13T02:00:08Z Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling OSINGA, Ernst C. LEEFLANG, Peter S. H. WIERINGA, Jaap E. Are persistent marketing effects most likely to appear right after the introduction of a product? The authors give an affirmative answer to this question by developing a model that explicitly reports how persistent and transient marketing effects evolve over time. The proposed model provides managers with a valuable tool to evaluate their allocation of marketing expenditures over time. An application of the model to many pharmaceutical products, estimated through (exact initial) Kalman filtering, indicates that both persistent and transient effects occur predominantly immediately after a brand's introduction. Subsequently, the size of the effects declines. The authors theoretically and empirically compare their methodology with methodology based on unit root testing and demonstrate that the need for unit root tests creates difficulties in applying conventional persistence modeling. The authors recommend that marketing models should either accommodate persistent effects that change over time or be applied to mature brands or limited time windows only. 2010-02-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/4838 info:doi/10.1509/jmkr.47.1.173 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University persistence modeling long-term marketing effectiveness time-varying parameters Kalman filtering pharmaceutical marketing Marketing |
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persistence modeling long-term marketing effectiveness time-varying parameters Kalman filtering pharmaceutical marketing Marketing OSINGA, Ernst C. LEEFLANG, Peter S. H. WIERINGA, Jaap E. Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling |
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Are persistent marketing effects most likely to appear right after the introduction of a product? The authors give an affirmative answer to this question by developing a model that explicitly reports how persistent and transient marketing effects evolve over time. The proposed model provides managers with a valuable tool to evaluate their allocation of marketing expenditures over time. An application of the model to many pharmaceutical products, estimated through (exact initial) Kalman filtering, indicates that both persistent and transient effects occur predominantly immediately after a brand's introduction. Subsequently, the size of the effects declines. The authors theoretically and empirically compare their methodology with methodology based on unit root testing and demonstrate that the need for unit root tests creates difficulties in applying conventional persistence modeling. The authors recommend that marketing models should either accommodate persistent effects that change over time or be applied to mature brands or limited time windows only. |
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text |
author |
OSINGA, Ernst C. LEEFLANG, Peter S. H. WIERINGA, Jaap E. |
author_facet |
OSINGA, Ernst C. LEEFLANG, Peter S. H. WIERINGA, Jaap E. |
author_sort |
OSINGA, Ernst C. |
title |
Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling |
title_short |
Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling |
title_full |
Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling |
title_fullStr |
Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling |
title_full_unstemmed |
Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling |
title_sort |
early marketing matters: a time-varying parameter approach to persistence modeling |
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Institutional Knowledge at Singapore Management University |
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2010 |
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https://ink.library.smu.edu.sg/lkcsb_research/4838 |
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1770572707641950208 |