The goal of the present paper is to investigate the influence of advertising on the diffusion of new telephones in West Germany. Several alternative ways of integrating advertising into the well-known Bass-diffusion-model are suggested and empirically tested. The econometric investigation yields results which are consistent with the behavioral assumption. A model which assumes that advertising mainly influenced the demand of imitators is accepted as the most valid representation of reality. The lag structure of advertising response was best captured by a Nerlove-Arrow-model. Advertising attained its maximum effect after several months. A cumulative measure of the total advertising effect is suggested and quantified. Directions for potential generalizations are discussed.marketing, advertising, new products, product life cycle
Although empirical evidence shows that advertising wears out over time and that advertising pulsation may be superior to a strategy of constant spending, current advertising models neither represent the wearout phenomenon nor consider pulsation as an optimal strategy. In this article, the wearout phenomenon is represented in a model which distinguishes between level stimuli and differential stimuli of advertising. The model is applied to several brands, and both advertising stimuli are found to be significant. A pulsation strategy is shown to be optimal under both an unconstrained and a constrained advertising budget.
The “hidden champions” among Germany's medium‐sized companies are becoming a by‐word for students of management. But do hidden champions exist outside Germany? What management processes distinguish them from other companies? And are there lessons from their success for other companies? This article, extracted from the author's forthcoming book, summarises his answers to these questions.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.