A Methodology for Measuring Response to Media Effects

Abstract

A stochastic model has been recently developed which dynamically examines changes in purchase response behaviour as a function of specific advertising exposures, past brand purchase experiences and interpurchase timing behaviour.

A minimum chi-square methodology is proposed to estimate the parameters of this model. A non-linear programming method allows the evaluation of the impact of past media exposures and brand choice experiences upon both individual consumer and aggregate market response. Simulated data are used for illustration.