Is Advertisement a Valid Tool to Increase Sales: A Study of Indian Manufacturing Companies

Dr. Sanchita

Authors

Dr. Sanchita

Keywords:

relationship between advertisement expenditure, sales and profit

Abstract

The paper studies the inter-relationship between advertisement expenditure, sales and profit. Taking ten-year data (2005-06 to 2014-15) of twenty manufacturing companies indexed in NSE's NIFTY, the study applied various models including descriptive study, correlation and regression. The tools used (Regression and Correlation) clearly show that there is a significant relationship between advertisement expenditure, sales and profit. The study concludes that there is a one-sided relationship between advertisements, sales and profit wherein advertisement expenditure positively impacts the sales and profit of the business in case of Indian manufacturing companies.

Downloads

How to Cite

Is Advertisement a Valid Tool to Increase Sales: A Study of Indian Manufacturing Companies. (2016). Global Journal of Management and Business Research, 16(17), 41-48. https://journalofbusiness.org/index.php/GJMBR/article/view/

Download Citation

References

David Aaker, Robert Jacobson (1994) The Financial Information Content of Perceived Quality. 31(May 1994), 191-201.

L. Anselin (1988) Spatial Econometrics: Methods and Models, Kluwer Academic, Dordrecht.

Manuel Arellano (2003) Panel Data Econometrics. https://doi.org/10.1093/0199245282.001.0001

Ayanian (1975) Bloch (1974), Demsetz (1979), Palda (1964).

C. Brooks, A. Clare, J. Dalle Molle, G. Persand (2005) A comparison of extreme value theory approaches for determining value at risk. 12, 339-352.

C. Brooks (2008) Introductory Econometrics for Finance.

R. Fair, R. Shiller (1990) Comparing Information in Forecasts from Econometric Models. 80, 375-389.

P. Franses, D. Van Dijk (1996) Forecasting stock market volatility using (non-linear) Garch models. 15, 229-235.

S. Gilbody, P. Wilson, I. Watt (2005) Benefits and harms of direct to consumer advertising: a systematic review. 14(4), 246-250. https://doi.org/10.1136/qshc.2004.012781

A. Glazer (1981) Advertising, information and prices: a case study. 19, 661-671.

Chiquan Guo (2003) Cointegration Analysis of Advertising Consumption Relationshi.

Harsharanjeet Jagpal (1981) Measuring Joint Advertising Effects in Multiproduct Firms: Use of a Hierarchy-of-Effects Advertising- Sales Mode. 21(1).

Ulrich Kaiser, Julian Wright (2006) Price Structure in Two-Sided Markets: Evidence from the Magazine Industry' International Journal of Industrial Organization. 24(1), 1-28. https://doi.org/10.1016/j.ijindorg.2005.06.002

Leach, F. Daniel, W. Reekie (1996) A natural experiment of the effect of advertising on sales: the SASOL case. 28, 1081-1091.

Chang-Yang Lee (2002) Advertising, Its Determinants, and Market Structure. 21(1), 89-101. https://doi.org/10.1023/a:1016020026207

S. Leong, S. Outiaris, G. Franke (1996) Estimating Long Term Effects of Advertising on Sales: A Cointergration Perspective. 2(2).

M. Metwally (1997) Determinants of Growth of Advertising Expenditure on Consumer Goods and Services: The Australian Experience. 22(3), 147-156.

Sethi Pagan J, S, G. Soydemir (2001) The impact of promotion/advertising expenditures on citrus sales. 8(10).

P. Philip, Abbey (2007) The Relationship between Advertising and Consumption in India: An Analysis of Causality. 341-346.

Rolf Rundfelt (1973) Advertising Cost in Sweden: Structure and Determinants.

David Shilbury, Megan Berriman (1996) Sponsorship Awareness: A Study of St. Kilda Football Club Supporters. 5(1), 27-33. https://doi.org/10.1177/106169349600500104

K. Stange (2007) In This Issue: Doctor-Patient and Drug Company-Patient Communication. 5(1), 2-4. https://doi.org/10.1370/afm.670

Lester Telser (1964) Advertising and Competition. 72(6), 537-562. https://doi.org/10.1086/258962

Lester Taylor, Weiserbs Daniel (1972) Advertising and Aggregate Consumption Function. 642-655.

H. Theil (1966) Applied Economic Forecasting, North-Holland, Amsterdam.

Amalia Yiannaka, Konstantinos Giannakas, Kien Tran (2002) Medium, message and advertising effectiveness in the Greek processed meats industry. 34(14), 1757-1763. https://doi.org/10.1080/00036840110118755

George Zinkhan, C. Cheng (1992) Agnes: Marketing Communication3 Intensity Across Industries. 23(3), 758-769. https://doi.org/10.1111/j.1540-5915.1992.tb00416.x