IDEAS home Printed from https://ideas.repec.org/a/wly/apsmbi/v35y2019i3p479-491.html
   My bibliography  Save this article

Assessing the effect of advertising expenditures upon sales: A Bayesian structural time series model

Author

Listed:
  • Víctor Gallego
  • Pablo Suárez‐García
  • Pablo Angulo
  • David Gómez‐Ullate

Abstract

We propose a robust implementation of the Nerlove‐Arrow model using a Bayesian structural time series model to explain the relationship between advertising expenditures of a countrywide fast‐food franchise network with its weekly sales. Due to the flexibility and modularity of the model, it is well suited to generalization to other markets or situations. Its Bayesian nature facilitates incorporating a priori information reflecting the manager's views, which can be updated with relevant data. This aspect of the model will be used to support the decision of the manager on the budget scheduling of the advertising firm across time and channels.

Suggested Citation

  • Víctor Gallego & Pablo Suárez‐García & Pablo Angulo & David Gómez‐Ullate, 2019. "Assessing the effect of advertising expenditures upon sales: A Bayesian structural time series model," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 35(3), pages 479-491, May.
    • Handle: RePEc:wly:apsmbi:v:35:y:2019:i:3:p:479-491
    DOI: 10.1002/asmb.2460
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/asmb.2460
    Download Restriction: no
    File URL: https://libkey.io/10.1002/asmb.2460?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apsmbi:v:35:y:2019:i:3:p:479-491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1526-4025 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.