Article ID: | iaor1994133 |
Country: | United Kingdom |
Volume: | 44 |
Issue: | 5 |
Start Page Number: | 491 |
End Page Number: | 502 |
Publication Date: | May 1993 |
Journal: | Journal of the Operational Research Society |
Authors: | Mesak H.I., Darrat A.F. |
Keywords: | Lanchester theory and models |
Using a modified Lanchester model, this article demonstrates that the policy of constant advertising spending is superior to a cyclic counterpart, provided that the advertising response functions of competing firms are concave. The competitive model is estimated using filter and non-filter cigarette data. The empirical results suggest the presence of over-advertising and that the relative effectiveness and elasticity of filter cigarette advertising are both higher than those of non-filter cigarette advertising.