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Econometric Measurement Of The Duration Of Advertising Effect On Sales

Darral G. Clarke

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A survey of the econometric literature is undertaken to determine the duration of cumulative advertising effect on sales. The surveyed studies yield conflicting estimates of the duration interval. The data interval is shown to have a powerful influence on the implied duration of advertising effect. The evidence leads to the conclusion that the cumulative effect of advertising on sales lasts for only months rather than years.