20.3 Transformation

20.3.1 Log-transformation

(Manchanda, Rossi, and Chintagunta 2004; Wies et al. 2019) used 1 in place of 0 for log-transformation. And also use 0.5 and 0.0001 for sensitivity analysis.

To control for firm size effects, (Wies et al. 2019) scale advertising investments by the firm’s total assets in the given year

References

Manchanda, Puneet, Peter E. Rossi, and Pradeep K. Chintagunta. 2004. “Response Modeling with Nonrandom Marketing-Mix Variables.” Journal of Marketing Research 41 (4): 467–78. https://doi.org/10.1509/jmkr.41.4.467.47005.

Wies, Simone, Arvid Oskar Ivar Hoffmann, Jaakko Aspara, and Joost M. E. Pennings. 2019. “Can Advertising Investments Counter the Negative Impact of Shareholder Complaints on Firm Value?” Journal of Marketing 83 (4): 58–80. https://doi.org/10.1177/0022242919841584.