The relationship between advertising and sales of publicly-listed companies in the ASEAN food industry

• Main Authors: Co, Neil Kendrick Y., Dionola, Jonah Eymard M., Jagonos, Jeffrey Q., Siazar, Vince Jason L.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Advertising > Food > Southeast Asia
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6192
• Institution: De La Salle University

The aim of this study is to determine the relationship between advertising and sales. In the first place, companies spend on advertising in recognition of the importance of remaining relevant in a competitive global market. Correspondingly, advertising is done to attract more sales. At the same time, sales level can influence the amount a company invests in advertising. The study treated the changes in level of advertising expense and changes in level of sales of publicly-listed companies under the ASEAN food industry for the years 2010 to 2014 as the variables of concern. The study utilized ordinary least squares regression to determine the relationship of interest. Conclusively, it was discovered that advertising expense has a significant impact on sales. On the other hand, sales do not have a significant impact on advertising expense. All things considered, the study hopes that the determined relationship will help companies in making decisions and constructing strategies related to advertising. It also suggests that in managing company cost efficiency and effectiveness, managers should use other factors as gauge in the assessment of expenditures.