Why do firms invest in consumer advertising with limited sales response? A shareholder perspective

Marketing managers increasingly recognize the need to measure and communicate the impact of their actions on shareholder returns. This study focuses on the shareholder value effects of pharmaceutical direct-to-consumer advertising (DTCA) and direct-to-physician (DTP) marketing efforts. Although DTCA has moderate effects on brand sales and market share, companies invest vast amounts of money in it. Relying on Kalman filtering, the authors develop a methodology to assess the effects from DTCA and DTP on three components of shareholder value: stock return, systematic risk, and idiosyncratic risk. Investors value DTCA positively because it leads to higher stock returns and lower systematic risk. Furthermore, DTCA increases idiosyncratic risk, which does not affect investors who maintain well-diversified portfolios. In contrast, DTP marketing has modest positive effects on stock returns and idiosyncratic risk. The outcomes indicate that evaluations of marketing expenditures should include a consideration of the effects of marketing on multiple stakeholders, not just the sales effects on consumers.

Early marketing matters:a time-varying parameter approach to persistence modeling

Are persistent marketing effects most likely to appear right after the introduction of a product? The authors give an affirmative answer to this question by developing a model that explicitly reports how persistent and transient marketing effects evolve over time. The proposed model provides managers with a valuable tool to evaluate their allocation of marketing expenditures over time. An application of the model to many pharmaceutical products, estimated through (exact initial) Kalman filtering, indicates that both persistent and transient effects occur predominantly immediately after a brand's introduction. Subsequently, the size of the effects declines. The authors theoretically and empirically compare their methodology with methodology based on unit root testing and demonstrate that the need for unit root tests creates difficulties in applying conventional persistence modeling. The authors recommend that marketing models should either accommodate persistent effects that change over time or be applied to mature brands or limited time windows only.

Strong spectral filtering for a mode-locked similariton fiber laser

We propose a novel mode-locked fiber laser design that relies on attracting similariton solutions in fiber amplifiers with normal group-velocity dispersion and strong spectral filtering to compensate increased pulse duration and bandwidth. Stable high-energy, large-bandwidth pulses are obtained that can be linearly compressed, resulting in ultrashort pulses.

Performance impact of asymmetric filtered 40Gb/s RZ DPSK system:tight optical filtering considerations

We present the impact of Asymmetric filtering of strong (e.g. 35 GHz) optical filters on the performance of 42.7 Gb/s 50% RZ-DPSK systems. The performance is evaluated when offsetting the filter by substantial amounts and it is found that with an offset of almost half the bit rate there is a significant improvement in the calculated Q.

Characterization of asymmetric filtered 40 Gb/s RZ-DPSK system-strong filtering considerations

We present the impact of frequency offsetting of strong (e.g. 35 GHz) optical filters on the performance of 42.7 Gb/s 50% RZ-DPSK systems. The performance is evaluated when offsetting the filter by substantial amounts and it is found that with an offset of almost half the bit rate there is a significant improvement in the calculated 'Q' (> 1 dB). We deployed balanced, constructive single ended and destructive single ended detection, so that we could investigate the physical origins of the penalty reduction of asymmetric filtering of 42.7 Gb/s 50% RZ-DPSK system.

Characterization of asymmetric filtered 40 Gb/s RZ-DPSK system-strong filtering considerations

We present the impact of frequency offsetting of strong (e.g. 35 GHz) optical filters on the performance of 42.7 Gb/s 50% RZ-DPSK systems. The performance is evaluated when offsetting the filter by substantial amounts and it is found that with an offset of almost half the bit rate there is a significant improvement in the calculated 'Q' (> 1 dB). We deployed balanced, constructive single ended and destructive single ended detection, so that we could investigate the physical origins of the penalty reduction of asymmetric filtering of 42.7 Gb/s 50% RZ-DPSK system.