Advertisement Cause Sales or Sales Cause Advertisement: A Case of Indian Manufacturing Companies

27 Pages Posted: 1 May 2011 Last revised: 2 Feb 2018

See all articles by Gagan Deep Sharma

Gagan Deep Sharma

Guru Gobind Singh Indraprastha (GGSIP) University

Mandeep Mahendru

Gian Jyoti Institute of Management & Technology

Sanjeet Singh

UCRD, Chandigarh University; Chandigarh University

Date Written: May 1, 2011

Abstract

The present study builds on the literature already available on the inter-linkages between advertisement and sales by focusing on India. The data used in the study is the secondary data taken from the annual reports of the company and the then the statistical tools i.e. mean, median, std. deviation, regression, kurtosis, skewness used for the evaluation purpose. The study uses regression and econometric models in order to find out the cause and effect relationship between advertisement expenditure and sales. Taking 5 year data of ten manufacturing companies of India, we present their descriptive statistics, regression, unit root test, Vector Auto Regression, and Variance decomposition. Except for VAR model, rest of the tools used (Regression and Variance decomposition) clearly show that there is a significant relationship between advertisement expenditure and sales.

Keywords: Inter-linkages, Unit root test, Vector Auto Regression, Variance Decomposition

Suggested Citation

Sharma, Gagan Deep and Mahendru, Mandeep and Singh, Sanjeet, Advertisement Cause Sales or Sales Cause Advertisement: A Case of Indian Manufacturing Companies (May 1, 2011). Available at SSRN: https://ssrn.com/abstract=1827405 or http://dx.doi.org/10.2139/ssrn.1827405

Gagan Deep Sharma (Contact Author)

Guru Gobind Singh Indraprastha (GGSIP) University ( email )

Sector 16 C,
Dwarka
Delhi, Delhi 110078
India

Mandeep Mahendru

Gian Jyoti Institute of Management & Technology ( email )

Phase - II
Mohali, Punjab
India

Sanjeet Singh

UCRD, Chandigarh University ( email )

National Highway 95
Chandigarh, 140413
India

Chandigarh University ( email )

Gharuan
Mohali
Mohali, Punjab 140413
India

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