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

See all articles by Shuba Srinivasan

Shuba Srinivasan

Boston University - Questrom School of Business

Marc Vanhuele

HEC Paris - Marketing

Koen Pauwels

Ozyegin University

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

Srinivasan, Shuba and Vanhuele, Marc and Pauwels, Koen, Mindset Metrics in Market Response Models: An Integrative Approach (August 1, 2010). Journal of Marketing Research, Vol. XLVII, pp. 672-684, August 2010, Available at SSRN: https://ssrn.com/abstract=1671511

Shuba Srinivasan (Contact Author)

Boston University - Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA MA 02215
United States
6173535978 (Phone)
6173534098 (Fax)

HOME PAGE: http://smgnet.bu.edu/mgmt_new/profiles/SrinivasanShuba.html

Marc Vanhuele

HEC Paris - Marketing ( email )

Paris
France

Koen Pauwels

Ozyegin University ( email )

Kusbakisi Cd. No: 2
Altunizade, Uskudar
Istanbul, 34662
Turkey

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