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Explaining advertising intensity at the firm level : the belgian case

Author

Listed:
  • Patrick De Pelsmacker
  • Marc Jegers
  • J. Proost

Abstract

[fre] Un modèle empirique expliquant l'intensité publicitaire au niveau de l'entreprise par sa rentabilité, sa dimension, sa part du marché et la connotation émotionnelle de ses produits, est estimé. Les données concernent 571 entreprises belges et contiennent des variables financières et publicitaires individualisées. Les entreprises proviennent de divers secteurs de produits de consommation et de produits de production. Des différences potentielles entre des firmes distributeurs et les autres d'une part entre des firmes dans des secteurs de produits de consommation et firmes dans des secteurs de produits de production d'autre part et finalement entre des firmes produisant des biens durables et firmes produisant des biens non-durables, sont examinées. Les conclusions principales sont :. 1) qu'il n'y a pas de relation positive significative entre la rentabilité et l'intensité publicitaire,. 2) que la dimension semble avoir un effet négatif sur l'intensité publicitaire,. 3) que les entreprises distributeurs aussi bien que les entreprises engagées dans des secteurs avec une importante connotation émotionnelle ont une intensité publicitaire plus élevée que les autres entreprises. [eng] On the basis of financial and advertising data on 571 Belgian companies, both consumer goods and producer goods firms, a model has been empirically tested in which advertising intensity at the firm level is defined as a function of profitability, dimension, market share, and the amount of emotional content of the firm's products. Potential differences between retailing companies and other firms, and between durable and non-durable goods companies, are also examined. The most important conclusions are that, contrary to expectations, there is no significant positive relationship between profitability and advertising intensity, and both retailing firms and companies marketing products with a high emotional value, have higher advertising intensities.

Suggested Citation

  • Patrick De Pelsmacker & Marc Jegers & J. Proost, 1992. "Explaining advertising intensity at the firm level : the belgian case," Revue d'Économie Industrielle, Programme National Persée, vol. 60(1), pages 42-52.
  • Handle: RePEc:prs:recind:rei_0154-3229_1992_num_60_1_1422
    DOI: 10.3406/rei.1992.1422
    Note: DOI:10.3406/rei.1992.1422
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