Question

relationship between expenditures and advertisement and sales. qualitative or quantitative? ​

Answer 1

Answer:

Advertising plays a major role in marketing for the companies. The conventional approach suggests that advertising by the company helps in increasing the sales. This article investigates the relationship between advertising expenditure and sales with reference to Indian service sector. It is analyzing the long-run and short-run properties of the sales–advertising expenditure relationship for 106 companies. Data from year 2000 to 2012 have been used. Augmented Dickey–Fuller test (ADF), Engle–Granger two-step cointegration, Granger causality test and the vector error correction model (VECM) have been used to test the relationship. The results of the five groups based on the size of the companies showed varied results.