RT Journal Article
SR Electronic
T1 The Power of Inertia
JF Journal of Advertising Research
JO J Advert Res
FD WARC
SP 356
OP 372
DO 10.2501/JAR-51-2-356-372
VO 51
IS 2
A1 Marcel Corstjens
A1 Andris Umblijs
A1 Chao Wang
YR 2011
UL http://www.journalofadvertisingresearch.com/content/51/2/356.abstract
AB The authors propose a pragmatic methodology to provide management with directional guidance in their marketing-resource allocation decisions. The authors report on the estimated market-response functions for products from seven different industries. In each industry, the most popular marketing vehicle receives the largest share of the marketing budget. A number of rationales may explain these allocation decisions, to which the authors add the hypothesis of conservative decision making in marketing. According to this hypothesis, the observed allocation pattern signals a significant overspending on some marketing drivers and underinvestment in alternative marketing vehicles. Marketing managers, thereby, forego the profitable growth opportunities potentially available from the reallocation of their marketing budgets.