IDEAS home Printed from https://ideas.repec.org/a/icf/icfjae/v03y2004i6p42-59.html
   My bibliography  Save this article

Advertising Behaviour In The Indian Automobile Industry

Author

Listed:
  • Dr. Sangeeta D. Misra
  • Dr. Dheeraj Misra

Abstract

This 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.

Suggested Citation

  • Dr. Sangeeta D. Misra & Dr. Dheeraj Misra, 2004. "Advertising Behaviour In The Indian Automobile Industry," The IUP Journal of Applied Economics, IUP Publications, vol. 0(6), pages 42-59, November.
  • Handle: RePEc:icf:icfjae:v:03:y:2004:i:6:p:42-59
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjae:v:03:y:2004:i:6:p:42-59. See general 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). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.