Database models and managerial institution: 50% model + 50% manager
Management Science
Improving Decision Making by Means of a Marketing Decision Support System
Management Science
Managing Advertising and Promotion for Long-Run Profitability
Marketing Science
The Category-Demand Effects of Price Promotions
Marketing Science
Enriching Scanner Panel Models with Choice Experiments
Marketing Science
Endogeneity in Marketing Decision Models
Marketing Science
Do Promotions Benefit Manufacturers, Retailers, or Both?
Management Science
Who Benefits from Store Brand Entry?
Marketing Science
Competitive Reactions to Advertising and Promotion Attacks
Marketing Science
Modeling Online Browsing and Path Analysis Using Clickstream Data
Marketing Science
The Changing Architecture of Advertising Agencies
Marketing Science
Marketing Science
Generalized Robust Conjoint Estimation
Marketing Science
Editorial: Save ResearchAbandon the Case Method of Teaching
Marketing Science
Optimal Data Interval for Estimating Advertising Response
Marketing Science
The Changing Architecture of Advertising Agencies
Marketing Science
Marketing Science
Content Contributor Management and Network Effects in a UGC Environment
Marketing Science
The Impact of IT-Related Spillovers on Long-Run Productivity: An Empirical Analysis
Information Systems Research
Social Media and Firm Equity Value
Information Systems Research
Quantify sales impact of location-based advertising
International Journal of Mobile Communications
Hi-index | 0.00 |
Long-term marketing effectiveness is a high-priority research topic for managers, and emerges from the complex interplay among dynamic reactions of several market players. This paper introduces restricted policy simulations to distinguish four dynamic forces: consumer response, competitor response, company inertia, and company support. A rich marketing dataset allows the analysis of price, display, feature, advertising, and product-line extensions. The first finding is that consumer response differs significantly from the net effectiveness of product-line extensions, price, feature, and advertising. In particular, net sales effects are up to five times stronger and longer-lasting than consumer response. Second, this difference is not due to competitor response, but to company action. For tactical actions (price and feature), it takes the form of inertia, as promotions last for several weeks. For strategic actions (advertising and product-line extensions), support by other marketing instruments greatly enhances dynamic consumer response. This company action negates the postpromotion dip in consumer response, and enhances the long-term sales benefits of product-line extensions, feature, and advertising. Therefore, managers are urged to evaluate company decision rules for inertia and support when assessing long-term marketing effectiveness.