Assessing the Effect of Change in Advertising Strategy Through Use of Intervention Methods: A Case Study

Abstract

This paper applies a time series approach, intervention analysis, to estimate the impact of a manufacturer’s change in advertising strategy on the units sold to its dealers. The analysis provided a model informative and parsimonious in variables and interesting in descriptive information concerning the impact of the change in advertising strategy. The results revealed an estimated increase in mean level of 38,270 units sold per month. Additionally, the monthly dealer advertising expenditures were used as input to the monthly units sold series, suggesting that a relationship exists between the number of units sold to the manufacturer’s dealers and the extent of the dealers monthly advertising expenditures.