How Corporate Cultures Drive Advertising and Promotion Budgets

ABSTRACT

This study provides a survey of the methods used by U.S. advertisers to set advertising and promotions budgets and the effects of culture, risk, and organizational experience on these choices. Findings suggest that heuristics provide checks on analytically based budget methods and may also help managers deal with risks. Understanding the role played by heuristics in budgeting provides the first step toward process improvements in advertising and promotions budgeting.