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rm-level depreciation rates are in the range of 15 to 50% per year.25 Lambin's (1976, p. 96) depreciation-rate estimates for brand advertising vary widely across product groups but take an average of around 50% per year.
Likewise, in a study of the cigarette industry, Brown (1978) reports brand-level depreciation rates in the 60% range.
a constant depreciation rate.
ects of advertising on sales depreciate over a shorter period of time can lead to biased estimates of the depreciation rate.
cation and reports depreciation rates of 80% and above for brands of soft drinks and cigarettes.
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