The advertising decisions depend on sales of products

Authors

  • ALEXANDER SELLAMEN GARZÓN Grupo de investigación en Economía Social, Gries
  • ANDRES FELIPE ARCE MESA

DOI:

https://doi.org/10.18041/1900-0642/criteriolibre.2010v8n12.1263

Keywords:

Sales, Advertising, Econometrics, Effect threshold, Prices

Abstract

This work is intended to identify the dependence that exists between the advertising to be programmed by a company and its sales. Knowing that this measure of demanded quantity so much of his price depends as in his advertising spending. Many of the companies can create barriers at the entry of possible rivals using the advertising and the difference of the products. To be able to achieve this dependence that exist between these two variables (sales vs advertising); the parameters were estimated by econometrical methods of minimum squares, where it was explained that if to major advertising, major sales exist, and therefore, major income. In this work also the topic was approached on how the supermarkets must know the elasticity of demand with regard to the advertising, which depends on the zone where they are located.

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Published

2018-02-08

How to Cite

The advertising decisions depend on sales of products. (2018). Criterio Libre, 8(12), 143-161. https://doi.org/10.18041/1900-0642/criteriolibre.2010v8n12.1263