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June 1, 1957Operations Research617 citations

An Operations-Research Study of Sales Response to Advertising

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MVM. L. VidaleHWHarry B. Wolfe

Key Points

  • The aim is to understand how advertising influences sales and develop a model for analysis.
  • Developed a model to assess interaction between advertising and sales.
  • Utilized controlled experiments across various products and media.
  • Analyzed key parameters: Sales Decay Constant, Saturation Level, and Response Constant.
  • The model effectively predicts sales response to advertising campaigns.
  • Key parameters provide insights into optimizing advertising budget allocations.
  • The study confirms the model's validity across multiple product categories and media.

Abstract

This paper presents the results of studies for major industrial concerns on the sales response to advertising. A simple model of the interaction of advertising and sales is described that is consistent with the results of controlled experiments performed on a large number of products and several media. The model is based on three parameters Sales Decay Constant, Saturation Level, and Response Constant. It has proved useful for analyses of advertising campaigns and for allocations of advertising appropriations.

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Cite This Study

Vidale et al. (1957) studied this question.

synapsesocial.com/papers/6a0fed5d9e54838161fd69efhttps://doi.org/10.1287/opre.5.3.370
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