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Regression Analysis Model

Estimation is done separately for each of three revenue types

Model


where:
Sit is unit sales of brand i in month t in thousands of units
t is 1,…,72
Pit is average price of brand i in month t in dollars
JADit is an exponentially declining weighted sum of current and past medical journal advertising expenditures for brand i in month t in thousands of dollars
PMEit is weighted sum of physician meetings and events (brand i, month t, $000)
DETit is weighted sum of detailing (brand i, month t, $000)
DTCit is weighted sum of direct-to-consumer marketing (brand i, month t, $000)
T = 0 if <1994, 1 if 1995-98, 2 if >1998
CJADit is competing brands’ JAD (month t, $000)
CPMEit is competing brands’ PME (month t, $000)
CDETit is competing brands’ DET (month t, $000)
CDTCit is competing brands’ DTC (month t, $000)
uit is a disturbance term.



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