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Advertising and Sales Promotion in Electricity

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  • Lyman, R Ashley

Abstract

Pooled firm data for 1959-68 provide the first evidence that both advertising and sales promotion have been statistically significant in increasing residential electric demand. The results indicate that advertising is principally informational, that new customers are most likely to be influenced, and that the effectiveness of a given expenditure in stimulating average per customer demand decreases with the number of customers to be reached. Finally, the findings are consistent with a theory of optimal advertising-sales ratios. The Dorfman-Steiner Rule does not hold, but the evidence is that it should not be ruled out in some modified form. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Lyman, R Ashley, 1994. "Advertising and Sales Promotion in Electricity," Journal of Regulatory Economics, Springer, vol. 6(1), pages 41-58, February.
  • Handle: RePEc:kap:regeco:v:6:y:1994:i:1:p:41-58
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    Cited by:

    1. Yuqing Zheng & Harry M. Kaiser, 2009. "Evaluating the effectiveness of generic advertising versus nonadvertising marketing activities on New York State milk markets," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 351-368.

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