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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Main Authors: OSINGA, Ernst C., LEEFLANG, Peter S. H., WIERINGA, Jaap E.
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Language:English
Published: Institutional Knowledge at Singapore Management University 2010
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/4838
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Institution: Singapore Management University
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spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic persistence modeling
long-term marketing effectiveness
time-varying parameters
Kalman filtering
pharmaceutical marketing
Marketing
spellingShingle 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
description 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.
format 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
publisher Institutional Knowledge at Singapore Management University
publishDate 2010
url https://ink.library.smu.edu.sg/lkcsb_research/4838
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