TY - JOUR T1 - Quantifying the Ripple: Word-of-Mouth and Advertising Effectiveness JF - Journal of Advertising Research JO - J Advert Res SP - 271 LP - 280 DO - 10.1017/S0021849904040243 VL - 44 IS - 3 AU - John E. Hogan AU - Katherine N. Lemon AU - Barak Libai Y1 - 2004/09/01 UR - http://www.journalofadvertisingresearch.com/content/44/3/271.abstract N2 - In this article the authors demonstrate how a customer lifetime value approach can provide a better assessment of advertising effectiveness that takes into account postpurchase behaviors such as word-of-mouth. Although for many advertisers word-of-mouth is viewed as an alternative to advertising, the authors show that it is possible to quantify the way in which word-of-mouth often complements and extends the effects of advertising. The authors provide a simple approach to the measurement of postpurchase word-of-mouth sales effects and demonstrate how firms may be underestimating advertising effectiveness by ignoring such effects. Their approach illustrates how customer lifetime value models can provide an important tool to assess the long-term effects of advertising campaigns. ER -