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Measurement of the effect of wool advertising

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  • Webb, S

Abstract

The paper reports a recent International Wool Secretariat (I.W.S.) study to measure the overall effect on sales of fibre advertising, based on annual data for eight major wool-consuming countries, collected from 1960 to 1970. An economic model of the fibre market is set up, and multiple linear regression is used to demonstrate a significant positive relationship between fibre sales and advertising. The effect of wool advertising is quantified, using the estimated regression coefficients, and its cost is compared with the estimated benefits to the wool industry in terms of increased revenue. Possible drawbacks of the approach described are considered, and aspects of the work requiring further study are also mentioned.

Suggested Citation

  • Webb, S, 1973. "Measurement of the effect of wool advertising," Omega, Elsevier, vol. 1(6), pages 757-770, December.
    • Handle: RePEc:eee:jomega:v:1:y:1973:i:6:p:757-770
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