Metrics unreliability and marketing overspending

Shrihari Sridhar, Prasad A. Naik and Ajay Kelkar

International Journal of Research in Marketing, 2017, vol. 34, issue 4, 761-779

Abstract: The adverse consequences of measurement unreliability on statistical issues (e.g., inconsistency, attenuation bias) are well known. Yet there exists sparse literature, if any, on how unreliable metrics affect strategic marketing decisions: optimal marketing budget, its optimal allocation to advertising and promotions, and overspending. Consequently, researchers and managers do not know: How to estimate dynamic demand models using unreliable data? How to optimally combine multiple noisy and biased metrics? How to optimally set the total marketing budget and optimally allocate it to advertising and promotions activities using unreliable sales metrics?

Keywords: Dynamic models; Measurement noise; Optimal budget and allocations; Kalman filter estimation; Emerging markets (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:34:y:2017:i:4:p:761-779

DOI: 10.1016/j.ijresmar.2017.09.001

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