Modeling the Dynamics on the Effectiveness of Marketing Mix Elements

• Main Author: Greene, Mallik
• Format: Others
• Published: ScholarWorks @ Georgia State University 2014
• Subjects: Time varying effect model; Marketing mix; Price elasticity; Social media; In-store marketing; Television advertising; Sales
• Online Access: http://scholarworks.gsu.edu/bus_admin_diss/43; http://scholarworks.gsu.edu/cgi/viewcontent.cgi?article=1044&context=bus_admin_diss

The objective of this study is to conduct a marketing mix modeling to measure the effectiveness of past marketing activities on the product sales using a time-varying effect model (TVEM) approach. The longitudinal intensive data for this study has come from a large ice cream manufacturer in USA. Traditionally, static regression models have been used to measure the effectiveness of marketing mix variables to predict sales. And, these models used to find the time independent effect of the covariate on the dependent variable. On the other hand, a dynamic model such as time-varying effect model takes time into consideration. Researchers can model the changes in the relationship between dependent and independent variables over time using time-varying effect model. This is the first study, where a time-varying effect model approach has been used to measure the effectiveness of marketing mix elements in the ice cream industry. In addition, we have compared the predictive validity of both static and dynamic models using this data set.