ERIC Number: ED159682
Record Type: RIE
Publication Date: 1978-Aug
An Empirical Approach to Determining Advertising Spending Level.
Sunoo, D. H.; Lin, Lynn Y. S.
To assess the relationship between advertising and consumer promotion and to determine the optimal short-term advertising spending level for a product, a research project was undertaken by a major food manufacturer. One thousand homes subscribing to a dual-system cable television service received either no advertising exposure to the product or heavy exposure for 26 four-week periods. Sales volume was used as the dependent variable and the following as independent variables: daytime and nighttime advertising spending levels of the product, consumer promotion level of the product, interaction of these two variables, second order terms of daytime and nighttime advertising variables, seasonal factor, and panel difference. The findings suggested that nighttime but not daytime advertising tended to complement consumer promotion activities. They also suggested that it was more useful to devise a number of advertising spending plans rather than a single one for the optimal short-time spending level. By identifying the interaction effect of media advertising and consumer promotion, the research project enabled the company to plan spending levels for the greatest return on its advertising investment and helped it to develop guidelines for media advertising scheduling. (FL)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the Annual Meeting of the Association for Education in Journalism (61st, Seattle, Washington, August 13-16, 1978)