Open AccessPROFITABILITY, ADVERTISING INTENSITY AND CONCENTRATION RATIO IN INDONESIAN CIGARETTE INDUSTRY (2000 -2013)
Author(s) -
Yulia Saftiana,
Benadette Robiani,
A K Syamsurijal,
Suhel
Publication year - 2018
Publication title -
international journal of research - granthaalayah
Language(s) - English
Resource type - Journals
eISSN - 2394-3629
pISSN - 2350-0530
DOI - 10.29121/granthaalayah.v6.i3.2018.1522
Subject(s) - profitability index , indonesian , sign (mathematics) , promotion (chess) , margin (machine learning) , business , intensity (physics) , measure (data warehouse) , tobacco industry , advertising , econometrics , marketing , economics , mathematics , computer science , medicine , finance , linguistics , political science , law , mathematical analysis , philosophy , physics , pathology , quantum mechanics , database , machine learning , politics
This study aimed to invest the relationship of structure, behavior and performance on cigarette industry in Indonesia. The variable used in this research is concentration ratio that used CR4 to measure industry structure, advertising intensity of four companies that included in CR4 to measure promotion behavior, Price Cost Margin (PCM) and profitability of four companies (ROS) included in CR4 to measure industry performance. Descriptive analysis between Price Cost Margin (PCM) and concentration of cigarette industry shows the direction of inconsistent relationship but for 23 years the direction of change is more positive than negative sign. Otherwise, the relationship between Return on Sales (ROS) with industrial concentration shows more negative sign than positive sign.