Corresponding author:
Moon Young Kang, KAIST College of Business, 85 Hoegiro, Dongdaemun-gu, Seoul 02455, Republic of Korea. Email: mkang@business.kaist.ac.kr
Introduction
According to popular press such as The Wall Street Journal and Advertising Age,advertising budgets are among the first items when reducing spending at many companies (2014 and 2017) (Neff, 2017; Vranica & Sharma, 2014). However, cutting back advertising spending does not guarantee improved profits. Without advertising, companies may lose opportunities to communicate with their customers, so that their sales eventually drop. To prevent such mistakes, companies need practical guidelines to make efficient advertising decisions. That...