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Sales-Advertising Relationship: An Application of Panel Data from the German Automobile Industry

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  • Petr Mariel
  • Cristina López
  • Karmele Fernández

Abstract

This paper uses panel data from the German car industry for the estimation of parameters of a demand equation applying different statistical methodologies and paying special attention to advertising variables. Two important conclusions can be drawn. First, advertising plays an important role in this market but its effectiveness depends on its form and type of message; and second, the marketing policy of a firm has to take into account the size of its cars.

Suggested Citation

  • Petr Mariel & Cristina López & Karmele Fernández, 2006. "Sales-Advertising Relationship: An Application of Panel Data from the German Automobile Industry," Prague Economic Papers, Prague University of Economics and Business, vol. 2006(1), pages 29-43.
    • Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:1:id:274:p:29-43
    DOI: 10.18267/j.pep.274
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    References listed on IDEAS

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    More about this item

    Keywords

    principal components; classification; advertising;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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