Estimating marketing persistence on sales of consumer durables in China

Conventional studies consider advertising spending as a means to increase sales, and it has to be a sustained action in maintaining a desired level of sales. Recent studies on marketing persistence, however, indicate that a short-term marketing action could result in a long-lasting high level of sales. This phenomenon could save scarce marketing resources and is of obvious importance for marketing strategists. This paper aims to achieve two objectives. First, we propose an econometric model to estimate the effect of marketing persistence. Second, we apply the model to study the persistence phenomenon in China's consumer durables market. Based on our findings, we draw implications for designing sustainable strategies for long-term marketing profitability. © 2001 Elsevier Science Inc. All rights reserved.