Advertising-versus-marketing mix carryover effects: An empirical evaluation

Abstract

This article examines whether market-share-carryover effects can be primarily attributed to advertising or whether other marketing-mix variables play an important role in describing such lagged effects. Eight different lag specifications including implicit, explicit, and mixed-effect models were tested using data representing 15 brands in three New Zealand consumer-goods markets. The results show that for the majority of brands examined, lagged advertising is more significant that the sustained influence of price and distribution. This result is explained in terms of the relative maturity of the product classes studied.