The Relationship between Advertising and Consumption in India: An Analysis of Causality
As one of the largest growing economies in the world, India comprises an economic prospect of an immense scale, both as a global base and a domestic market. This article tries to find out whether advertising affect the consumption pattern of India. Advertising is of changing apprehension to companie...
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| Format: | Conference Paper |
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Faculty of Economics and Business,Universiti Malaysia Sarawak,94300 Kota Samarahan,Sarawak, Malaysia
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/31629 |
| _version_ | 1848753434733314048 |
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| author | Philip, Abey |
| author2 | Faculty of Economics |
| author_facet | Faculty of Economics Philip, Abey |
| author_sort | Philip, Abey |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | As one of the largest growing economies in the world, India comprises an economic prospect of an immense scale, both as a global base and a domestic market. This article tries to find out whether advertising affect the consumption pattern of India. Advertising is of changing apprehension to companies, as channels burgeon and product offerings become more advanced and bigger and bigger part of the marketing mix. Measurement of advertising and promotional activities is the biggest challenge of companies with in limited time and money. In the marketing literature, the relationship between advertising and sales at the individual firm and industry level has been a hotly debated issue for decades. Existing literature shows that the advertising-sales relationship at the macro level has not gained much attention. This article extends cointegration methodology to validate the evidence of soundness of advertising and consumption pattern of India during the period of 1980-2009. Augmented Dickey-Fuller test, Philips- Peron Test cointegration technique and error correction models were employed to examine association between advertising and consumption. The analysis reveals that there is strong bi-directional relationship between advertising and consumption pattern in India. The increase in advertising expenditure can have a positive impact of consumption irrespective of its lag. |
| first_indexed | 2025-11-14T08:24:28Z |
| format | Conference Paper |
| id | curtin-20.500.11937-31629 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:24:28Z |
| publishDate | 2011 |
| publisher | Faculty of Economics and Business,Universiti Malaysia Sarawak,94300 Kota Samarahan,Sarawak, Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-316292023-01-27T05:52:08Z The Relationship between Advertising and Consumption in India: An Analysis of Causality Philip, Abey Faculty of Economics Business Unit Root P32 O53 Causality Test JEL Classifications: M3 D12 Consumption Advertising C01 As one of the largest growing economies in the world, India comprises an economic prospect of an immense scale, both as a global base and a domestic market. This article tries to find out whether advertising affect the consumption pattern of India. Advertising is of changing apprehension to companies, as channels burgeon and product offerings become more advanced and bigger and bigger part of the marketing mix. Measurement of advertising and promotional activities is the biggest challenge of companies with in limited time and money. In the marketing literature, the relationship between advertising and sales at the individual firm and industry level has been a hotly debated issue for decades. Existing literature shows that the advertising-sales relationship at the macro level has not gained much attention. This article extends cointegration methodology to validate the evidence of soundness of advertising and consumption pattern of India during the period of 1980-2009. Augmented Dickey-Fuller test, Philips- Peron Test cointegration technique and error correction models were employed to examine association between advertising and consumption. The analysis reveals that there is strong bi-directional relationship between advertising and consumption pattern in India. The increase in advertising expenditure can have a positive impact of consumption irrespective of its lag. 2011 Conference Paper http://hdl.handle.net/20.500.11937/31629 Faculty of Economics and Business,Universiti Malaysia Sarawak,94300 Kota Samarahan,Sarawak, Malaysia restricted |
| spellingShingle | Unit Root P32 O53 Causality Test JEL Classifications: M3 D12 Consumption Advertising C01 Philip, Abey The Relationship between Advertising and Consumption in India: An Analysis of Causality |
| title | The Relationship between Advertising and Consumption in India: An Analysis of Causality |
| title_full | The Relationship between Advertising and Consumption in India: An Analysis of Causality |
| title_fullStr | The Relationship between Advertising and Consumption in India: An Analysis of Causality |
| title_full_unstemmed | The Relationship between Advertising and Consumption in India: An Analysis of Causality |
| title_short | The Relationship between Advertising and Consumption in India: An Analysis of Causality |
| title_sort | relationship between advertising and consumption in india: an analysis of causality |
| topic | Unit Root P32 O53 Causality Test JEL Classifications: M3 D12 Consumption Advertising C01 |
| url | http://hdl.handle.net/20.500.11937/31629 |