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Business Research

, Volume 4, Issue 2, pp 193–239

First Online: 28 February 2014Received: 09 February 2010Accepted: 25 September 2011

Abstract

Increasing demand for marketing accountability requires an efficient allocation of marketing expenditures. Managers who know the elasticity of their marketing instruments can allocate their budgets optimally. Meta-analyses offer a basis for deriving benchmark elasticities for advertising. Although they provide a variety of valuable insights, a major shortcoming of prior meta-analyses is that they report only generalized results as the disaggregated raw data are not made available. This problem is highly relevant because coding of empirical studies, at least to a certain extent, involves subjective judgment. For this reason, meta-studies would be more valuable if researchers and practitioners had access to disaggregated data allowing them to conduct further analyses of individual, e.g., product-level-specific, interests. We are the first to address this gap by providing 1 an advertising elasticity database AED and 2 empirical generalizations about advertising elasticities and their determinants. Our findings indicate that the average current-period advertising elasticity is 0.09, which is substantially smaller than the value 0f 0.12 that was recently reported by Sethuraman, Tellis, and Briesch 2011 . Furthermore, our meta-analysis reveals a wide range of significant determinants of advertising elasticity. For example, we find that advertising elasticities are higher i for hedonic and experience goods than for other goods; ii for new than for established goods; iii when advertising is measured in gross rating points GRP instead of absolute terms; and iv when the lagged dependent or lagged advertising variable is omitted.

JEL-ClassificationC10 D12 M37 Keywordsadvertising effectiveness advertising elasticity advertising elasticity database meta-analysis empirical marketing generalizations  Download to read the full article text



Author: Sina Henningsen - Rebecca Heuke - Michel Clement

Source: https://link.springer.com/







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