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Sales, advertising and distance

University of British Columbia

Most theories of promotion deal almost exclusively with behavioral parameters, and only superficially with the all-important action component. There have been few prior studies examining the sales effects of advertising. The major purpose of this thesis is to analyze the association between a number of advertising variables and the weekly sales volume of an automobile dealership. A corollary objective is to ascertain the role of average price and distance as related to sales. Relationships are tested by a multiple regression analysis on empirical data. Among the more important findings are: 1) Weekly Sales Dollars=-42.78 + .01 Dealer's Newspaper Lineage t-l + .47 Average Distance + 39.47 Average Price. N=51, R²=.40, F=10.97 2) Weekly Sales Dollars=-34.31 + .01 Dealer's Newspaper Lineage t-l + 39.51 Average Price. N=51, R²=.39, F=15.81 Both equations were significant at the .001 level. Regression estimates indicate that the dealer's newspaper advertising, average price of the automobile and distance travelled by consumers are related to weekly sales. The study is unable to conclude whether the retailer's broadcasting expenditures or the manufacturer's local advertising outlays are significant sales determinants.

Text

2011-06-15

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http://hdl.handle.net/2429/35453

Business Administration

University of British Columbia

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