The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice
Carl Mela, Sunil Gupta and Donald Lehmann use more than eight years of panel data on a frequently purchased packaged good to ask whether consumers' responses to marketing variables such as price change over time, and whether the changes follow shifts in manufacturers' advertising and retailers' promotion. A two-stage approach lets them estimate medium-term and long-term effects. They find that consumers become more price and promotion sensitive over time, which they link to reduced advertising and increased promotion.
Carl Mela, Sunil Gupta and Donald Lehmann use more than eight years of panel data on a frequently purchased packaged good to ask whether consumers' responses to marketing variables such as price change over time, and whether the changes follow shifts in manufacturers' advertising and retailers' promotion. A two-stage approach lets them estimate medium-term and long-term effects. They find that consumers become more price and promotion sensitive over time, which they link to reduced advertising and increased promotion.
Written from the abstract read 2026-10-21 via IDEAS and Duke Scholars.
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Mela, C. F., Gupta, S., & Lehmann, D. R. (1997). The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice. Journal of Marketing Research, 34(2), 248-261. doi:10.1177/002224379703400205