Advertising Behaviour In The Indian Automobile Industry
AbstractThis study attempts to find out the factors, which determine the advertising intensity of firms in the Indian automobile industry. The theoretical model used is Schmalensee's ertention of the Dorfman-Steiner model of advertising. The theoretical model shows that the ratio of advertising expenditure to sales for a firm depends upon its price cost margin; its elasticity of demand with respect to own advertising (b) and with respect to other firm's advertising (c), and on the elasticity of advertising response of other firms to own advertising (d). Before the theoretical model could be empirically tested, estimates of the three elasticity parameters, (b), (c) and (d) were made at the firm level using time series data. Results showed elasticities '(b)' and '(d)' to be significant parameters while elasticity 'c' turned out to be an insignificant parameter at the firm level. Finally, the Dorfrnan-Steiner model was tested by regressing advertising intensity (defined as the ratio of advertising expenditure to sales) on price cost margin, own advertising elasticity of demand (b) and on elasticity of response of rivals to own advertising (d), using cross section data. Results indicate that the model is applicable to a large extent in the Indian automobile industry.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Applied Economics.
Volume (Year): III (2004)
Issue (Month): 6 (November)
Contact details of provider:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).
If references are entirely missing, you can add them using this form.