Prague Economic Papers 1/2006

SALES-ADVERTISING RELATIONSHIP: AN APPLICATION OF PANEL DATA FROM THE GERMAN AUTOMOBILE INDUSTRY

Petr MARIEL, Cristina LÓPEZ, Karmele FERNÁNDEZ, Departamento de Econometría y Estadística, Universidad del País Vasco, Lehendakari Aguirre 83, E48015 BILBAO, Spain, e-mail: etpmaxxp@bs.ehu.es

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.

Klíčová slova / Keywords: advertising, classification, principal components