The effects of advertising on fast-moving consumer goods markets

Article Abstract:

The relationship between advertising spending levels and the market movements of consumer goods was examined based on a cross-sectional study of 42 fast-moving products. Results revealed no consistent correlation between weight of advertising spending and market growth. However, the level of advertising was linked to higher price premiums for leading branded products, compared to unadvertised brands. This result is supported by the finding that a negative correlation existed between private label shares and advertising levels.

Economic aspects, Market share, Advertising expenditures

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The authors reply to 'Tobacco Consumption and Advertising Restrictions: A Critique of Laugesen and Meads (1991)' by M.J. Stewart

Article Abstract:

Research findings on tobacco consumption and advertising restrictions by Murray Laugesen and Chris Meads were reexamined in response to M.J. Stewart's critique of the study. A different real price method and real income method was employed. However, the method of regression was not changed since Ordinary Least Squares method was inapplicable. Between-country differences in consumption were also re-analyzed which led to the correction of errors in the original study.

Criticism and interpretation, Consumer behavior, Laugesen, Murray, Meads, Chris

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