Measuring the lagged effects of advertising goodwill on dynamic promotional efficiency in the automobile industry

Abstract

Thus far, the data envelopment analysis (DEA) model has not been used to examine the lagged effects of advertising goodwill stock on promotional efficiency. Thus, this study develops a dynamic DEA framework to illustrate the lagged effect of advertising goodwill stock on the dynamic promotional efficiency of major automobile manufacturers in the United States. The advertising goodwill stock in five automobile producers was measured using the econometric model. Subsequently, the advertising goodwill stock was treated as a lagged effect in a dynamic DEA framework. We analyse the empirical results and formulate the following two important findings: First, the results demonstrate that the lagged effect of advertising goodwill stock can lead to changes in the promotional efficiency of advertising. Second, the paper discusses ways that inefficient automobile manufacturers can improve marketing strategy implementation.

Keywords:

• Data envelopment analysis
• econometrics
• time series
• marketing

Acknowledgements

L.-T. Yeh wishes to thank the Ministry of Science and Technology, Taiwan, which provided funding through contract MOST 109-2410-H-035-041.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the Ministry of Science and Technology, Taiwan [grant number MOST 109-2410-H-035-041].