ABSTRACT
The advertising–sales relationship remains paramount. This study—believed to be the largest that focuses on automotive sales and advertising—investigates ceilings and thresholds by optimizing budget allocations among media. The study considered 12 vehicle brands in South Africa, spanning 8 years of sales, reflecting sales and media expenditure. It also considers the effect of competitors' advertising expenditure and familiarity on the ceilings and thresholds of each medium, as well as the decay rate of advertising goodwill. Findings suggest that the allocation of expenditure among media types is subject to threshold phenomena. The findings also establish the impact of clutter and familiarity on market share, advertising efficacy, and ceilings and thresholds. Results highlight the interaction between current market share and advertising efficacy.
- Received March 3, 2018.
- Received (in revised form) June 14, 2018.
- Accepted July 17, 2018.
- Copyright© 2020 ARF. All rights reserved.
ARF MEMBERS
If you are a member of the Advertising Research Foundation, you can access the content by logging in here
Log In
Pay Per Article - You may access this article (from the computer you are currently using) for 30 days for US$20.00
Regain Access - You can regain access to a recent Pay per Article purchase if your access period has not yet expired.
Log in using your username and password
Vol 60 Issue 1
