Abstract
This research focuses on the role of advertising expenditure in determining the success of a product and its impact on the rate of product sales. We introduce the concept of change-point, which considers fluctuations in the adoption rate due to shifts in advertising strategies and competitor dynamics. The product diffusion models incorporating advertising expenditure and change-points are proposed and validated using two real-world product advertising and sales datasets. The models’s accuracy and applicability has been assessed through \(R^2\) (coefficient of determination) and mean square error (MSE). By investigating the relationship between advertising expenditure, change-point, and product sales, this study provides valuable insights for marketing and advertising strategies, aiding in better decision-making processes.
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The funding support provided by the Council of Scientific and Industrial Research (CSIR)-HRD, New Delhi (File No. 09/1256(0007)/2020-EMR-I).
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Shiva, Gupta, N. & Aggarwal, A.G. Innovation diffusion model based on advertising expenditure with change-point. Int J Syst Assur Eng Manag 15, 1794–1801 (2024). https://doi.org/10.1007/s13198-023-02109-6
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DOI: https://doi.org/10.1007/s13198-023-02109-6