Advertising Budgeting And Geographic Allocation

Cover Advertising Budgeting And Geographic Allocation
Advertising Budgeting And Geographic Allocation
Glen L Urban
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The values of advertising response in these exploratory equations were generally negative. This was counter intuitive, but was due to the contra-cyclical nature of advertising. Low advertising with high sales (summer) and high advertising with lower sales (fall). Tliis indicated future regressions would have to carefully separate seasonal sales and advertising effects. The formal time series regression analysis used the following equation: 18. Sales^ = b_ + b-jD^ + b„D- + b -advertising^ + b. S...ales^ . T 011223 °t4 t-1 r 1 ir C. Ot 1 in summer otherwise „, _ in winter )therwise D^ and D- are dummy variables that are specified in an attempt to deseasonallze the data. The results of these regressions are shown in Table 1. All the F statistics were significant at 10% level. The retention rates are generally significant and positive, but the advertising coefficients are low when positive and sometimes significantly negative. The retention rates were acceptable, but it was suspected that advertising and sales effects wert confounded.

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