An econometric approach to evaluate Navy advertising efficiency

Abstract

This thesis uses an econometric approach to systematically and comprehensively analyze Navy advertising and recruiting data to determine Navy advertising cost efficiency in the Navy recruiting process. Current recruiting and advertising cost data are merged into an appropriate data base and evaluated using multiple regression techniques to find assessments of the relationships between Navy advertising expenditures and recruit contracts attained. This work estimates an econometric model of cost-efficient allocation of Navy national, local, and joint advertising expenditures. The model is estimated using a simplified logarithmic transcendental cost function. It serves as a descriptive tool and explains the observed pattern of advertising cost and its allocation across media types within the Navy Recruiting Districts (NRD). This work's estimation uses monthly observations of all 31 NRD for the time span October 1991 through March 1995