Mindset Metrics in Market Response Models: An Integrative Approach
Journal of Marketing Research, Vol. XLVII, pp. 672-684, August 2010
13 Pages Posted: 8 Oct 2011
Date Written: August 1, 2010
Abstract
Demonstrations of marketing effectiveness currently proceed on two parallel tracks: quantitative researchers model the direct sales effects of the marketing mix, while advertising and branding experts trace customer mindset metrics like awareness and affect. We merge the two tracks and analyze the added explanatory value of including customer mindset metrics in a sales response model that already accounts for short and long-term effects of advertising, price, distribution and promotion. Vector Autoregressive modeling of the metrics for over 60 brands of four consumer goods shows that advertising awareness, brand consideration and brand liking account for almost one-third of explained sales variance. Interestingly, competitive and own mindset metrics make a similar contribution. Wear-in times reveal that mindset metrics can be used as advance warning signals that allow enough time for managerial action before market performance itself is affected. Specific marketing actions impact specific mindset metrics, with the strongest overall impact for distribution. Our findings suggest that modelers should include mindset metrics in sales response models, while branding experts should include competition in their tracking research.
Keywords: customer mind-set metrics, market response models, timeseries models, vector autoregressive models, forecast error
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Marketing and Firm Value: Metrics, Methods, Findings, and Future Directions
-
Consumer Negative Voice and Firm-Idiosyncratic Stock Returns
By Xueming Luo
-
Retail-Price Drivers and Retailer Profits
By Vincent R. Nijs, Shuba Srinivasan, ...
-
Product Innovations, Advertising and Stock Returns
By Shuba Srinivasan, Koen H. Pauwels, ...
-
The Financial Rewards of New Product Introductions
By Barry L. Bayus, Gary Erickson, ...
-
Innovation's Effect on Firm Value and Risk: Insights from Consumer Packaged Goods
By Alina Sorescu and Jelena Spanjol
-
The Financial Value Impact of Perceptual Brand Attributes
By Natalie Mizik and Robert Jacobson
-
The Long Term Stock Market Valuation of Customer Satisfaction
By Lerzan Aksoy, Bruce Cooil, ...
-
Quantifying the Long-Term Impact of Negative Word of Mouth on Cash Flows and Stock Prices
By Xueming Luo