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A study of measuring influence of advertising and forecasting cigarette sales
Author(s) -
Yucelt Ugur,
Kaynak Erdener
Publication year - 1984
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090050405
Subject(s) - advertising , consumption (sociology) , newspaper , loyalty , variables , regression analysis , variable (mathematics) , economics , econometrics , statistics , business , marketing , mathematics , mathematical analysis , social science , sociology
This study investigated the effect of advertising on cigarette sales, particularly after 1967. Data were collected using sources of the Statistical abstract of the U.S. , the Historical Statistics of the U.S. and Vital Statistics between 1955 and 1979 . A multiple regression model was used to analyze the data. Cigarette consumption was used as a dependent variable. Disposable Income, Death Rate due to cancer of the respiratory system/total cancer death, advertising outlays for cigarettes: Newspapers and television advertisement/total advertising cost, cigarette‐production (including long and regular sizes), sales outlets, loyalty/total loyalty, average price for cigarettes and a dummy variable were used as independent variables. Analysis revealed that there is a significant negative relationship between cigarette‐consumption and total cancer death and average prices on the one hand, and a significant positive association between loyalty and cigarette consumption on the other. Although advertising expenditures are not statistically significant, increased spending on advertising has an increasing effect on cigarette‐consumption.