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Metrics unreliability and marketing overspending

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  • Sridhar, Shrihari
  • Naik, Prasad A.
  • Kelkar, Ajay

Abstract

The adverse consequences of measurement unreliability on statistical issues (e.g., inconsistency, attenuation bias) are well known. Yet there exists sparse literature, if any, on how unreliable metrics affect strategic marketing decisions: optimal marketing budget, its optimal allocation to advertising and promotions, and overspending. Consequently, researchers and managers do not know: How to estimate dynamic demand models using unreliable data? How to optimally combine multiple noisy and biased metrics? How to optimally set the total marketing budget and optimally allocate it to advertising and promotions activities using unreliable sales metrics?

Suggested Citation

  • Sridhar, Shrihari & Naik, Prasad A. & Kelkar, Ajay, 2017. "Metrics unreliability and marketing overspending," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 761-779.
    • Handle: RePEc:eee:ijrema:v:34:y:2017:i:4:p:761-779
    DOI: 10.1016/j.ijresmar.2017.09.001
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