Published by:
Harvard Business Publishing
Length: 11 pages
Share a link:
https://casecent.re/p/48329
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Advertising is an investment which generates sales revenue over time. The duration and amount of the revenue depends on the loyalty of customers, the frequency of purchase and competitive products. Companies often regard advertising costs as expenses incurred in a short-term context, although advertising has a cumulative effect. The distributed lag model can measure this cumulative effect. This method, based on an analysis of a company''s past performance, can forecast advertising induced sales.
About
Abstract
Advertising is an investment which generates sales revenue over time. The duration and amount of the revenue depends on the loyalty of customers, the frequency of purchase and competitive products. Companies often regard advertising costs as expenses incurred in a short-term context, although advertising has a cumulative effect. The distributed lag model can measure this cumulative effect. This method, based on an analysis of a company''s past performance, can forecast advertising induced sales.