2010
DOI: 10.1007/s11002-010-9127-9
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How does awareness evolve when advertising stops? The role of memory

Abstract: Extant models posit that awareness declines immediately and gradually after the cessation of advertising, whereas anecdotal evidence from managers suggests awareness stays constant for a while and then decays rapidly. This pattern arises because consumers remember advertisements for a finite time before they forget. Hence, we extend advertising models by incorporating the memory for ads. We conceptualize the role of memory as "delayed forgetting of ads" and capture it using delay differential equations, which … Show more

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Cited by 34 publications
(32 citation statements)
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References 23 publications
(25 reference statements)
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“…Advertising is widespread and commonly used by marketers to introduce, remind, recall and position their products and services in consumers' mind. Aravindakshan and Naik (2011) observed that when advertising is stopped the ad stay in the memory of the customers for three weeks. Channel members are also important in the value creation process by marketers.…”
Section: Brand Awareness and Brand Loyaltymentioning
confidence: 99%
“…Advertising is widespread and commonly used by marketers to introduce, remind, recall and position their products and services in consumers' mind. Aravindakshan and Naik (2011) observed that when advertising is stopped the ad stay in the memory of the customers for three weeks. Channel members are also important in the value creation process by marketers.…”
Section: Brand Awareness and Brand Loyaltymentioning
confidence: 99%
“…Retailer advertising and manufacturer advertising costs are convex and represented, respectively, by 1 2 a 2 i and 1 2 A 2 i . Convex costs are a standard assumption in the literature when advertising decision variables enter the demand functions linearly.…”
Section: The Modelmentioning
confidence: 99%
“…Pulsing is also considered a better cost-saving advertising practice, compared to other scheduling alternatives, when advertising effects decay slowly over time (Ephron and McDonald, 2002;Dubé et al, 2005). Advertisers can take advantage of the carryover effect and temporally stop their advertising activities as a way of reducing advertising costs (Aravindakshan and Naik, 2011). This well-established theory in the monopoly has not been formally assessed in a marketing channel context.…”
Section: Introductionmentioning
confidence: 99%
“…The forgetting rate enables the depreciation of the effect of information between time t to t + 1. The forgetting rate is used in advertisement to calculate the information diffusion of adverts over a given time (Aravindakshan & Naik, 2011;Naik, 1999;West & Harrison, 1989). In this study, the information on energy efficiency measures can be seen as the advert diffused within the community through social interactions.…”
Section: The Expected Energy Cost Savings Modelmentioning
confidence: 99%