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- 1.
A key issue imbedded in here is the shape of the advertising response curve. Is it S-shaped (implying threshold effects) or concave (implying diminishing returns)? Simon and Arndt (1980) come out in favor of concave, but recent work by Vakratsas et al. (2004) shows this may not be the case – due to a censoring effect of the observed data.
- 2.
The full SCAN*PRO model also allows for seasonality and data disaggregated to the store level. The model in Equation (4.2) is for data aggregated to the market level.
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Danaher, P.J. (2008). Advertising Models. In: Wierenga, B. (eds) Handbook of Marketing Decision Models. International Series in Operations Research & Management Science, vol 121. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-78213-3_4
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