marketing mix variables. The substantial changes in marketing mix variables as well as
market share that accompany a major policy change provide a valuable opportunity to test for
persistence. Jedidi, Mela, and Gupta (1999) do not find significant long-term effects of
advertising on price or promotion sensitivity. Perhaps such effects can be detected with more
substantial variation in advertising. The P&G Value Pricing policy is one example of a policy
change, as are the Post Cereal price rollback of 1998, and Marlboro’s earlier price cutback.
We conclude with a call for making use of these strategic policy changes to better understand
the impact of marketing strategy.