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Measuring the lagged effects of advertising goodwill on dynamic promotional efficiency in the automobile industry

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  • Li-Ting Yeh
  • Dong-Shang Chang

Abstract

Thus far, the data envelopment analysis (DEA) model has not been used to examine the lagged effects of advertising goodwill stock on promotional efficiency. Thus, this study develops a dynamic DEA framework to illustrate the lagged effect of advertising goodwill stock on the dynamic promotional efficiency of major automobile manufacturers in the United States. The advertising goodwill stock in five automobile producers was measured using the econometric model. Subsequently, the advertising goodwill stock was treated as a lagged effect in a dynamic DEA framework. We analyse the empirical results and formulate the following two important findings: First, the results demonstrate that the lagged effect of advertising goodwill stock can lead to changes in the promotional efficiency of advertising. Second, the paper discusses ways that inefficient automobile manufacturers can improve marketing strategy implementation.

Suggested Citation

  • Li-Ting Yeh & Dong-Shang Chang, 2023. "Measuring the lagged effects of advertising goodwill on dynamic promotional efficiency in the automobile industry," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 74(10), pages 2094-2108, October.
    • Handle: RePEc:taf:tjorxx:v:74:y:2023:i:10:p:2094-2108
    DOI: 10.1080/01605682.2022.2128910
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