Testing Cumulative Advertising Effects: A Comment on Methodology

Abstract

Griliches’ test is not completely adequate for discriminating among several popular models of advertising effectiveness and, as a result, its use by several researchers in that area has produced inconclusive results. The authors review some past applications of Griliches’ test and develop a testing procedure which will properly discriminate between models of current and cumulative advertising effects. Finally, an empirical example of the proposed procedure is presented.