Time interval bias: Its impact on advertising budgeting

Mark M. Moriarty, John L. Lastovicka

Research output: Contribution to journalArticle

Abstract

This paper considers what happens when two key parameters in advertising budgeting models (immediate and lagged effects of advertising) are estimated without recognition of time interval (or temporal aggregation) bias. It is demonstrated that careful attention should be paid to whether annual, biannual or quarterly advertising-sales data are used in estimating these key budgeting parameters, otherwise the measurement bias in the key budgeting parameters is likely to be severe. Most importantly, this measurement bias is shown to impact substantially the managerial accuracy and usefulnessof dynamic advertising budgeting models.

Original languageEnglish (US)
Pages (from-to)115-128
Number of pages14
JournalCurrent Issues and Research in Advertising
Volume8
Issue number1
DOIs
Publication statusPublished - 1985
Externally publishedYes

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ASJC Scopus subject areas

  • Marketing

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