Journal of Management Research
Identifying the Determinants of Advertising Intensity in Iran’s Industries Using the Multiple Discriminant Analysis Technique
Abstract
This research is aimed at identifying the main variables in an industry based on which the advertising intensity in that industry can be estimated. Using prior knowledge, six variables, including investment, statism ratio, concentration, sales, added value and direct export were utilized by Multiple Discriminant Analysis, using the stepwise method. It turned out that among these variables, sales, direct export and concentration are variables which can better enhance the discrimination power of the model. Based on the means and standardized canonical coefficients of these three variables in different groups and also the group centroids in each function, we concluded that the first function is better at discriminating the first group from the other two and the second function is better at discriminating the third group from the other two. The correct classification percentage of 82% indicates the highly satisfactory performance of the model in classifying the data.
Full Text:
PDFReferences
Bhatia. T. K. (2000). Advertising in Rural India: Language, Marketing Communication, and Consumerism. Tokyo Press, Tokyo, Japan.
Buxton A. J.; Davies, S. W.; Lyons, B. R. (1984). Concentration and Advertising in Consumer and Producer Markets. The Journal of Industrial Economics, 32(4), pp. 451-464. http://dx.doi.org/10.2307/2098229
Cable, J. (1972). Market Structure, Advertising Policy, and Inter-Market Differences in Advertising Intensity. In Market Structure and Corporate Behaviour, edited by K. Cowling. London: Grays Mills.
Greer, Douglas F. (1971). Advertising and Market Concentration. Southern Economic Journal, 38, ( 1), pp. 19-32. http://dx.doi.org/10.2307/1056065
Landau, S. and & Everitt, B. S. (2003). A handbook of statistical analyses using SPSS. Chapman & Hall/CRC Press LLC
Lee, C. (2002). Advertising, its determinants, and market structure. Review of Industrial Organization, 21, pp. 89-101. http://dx.doi.org/10.1023/A:1016020026207
Manel, S., Dias, J.-M., & Ormerod, S. J. (1999). Comparing discriminant analysis, neural networks and logistic regression for predicting species distributions: a case study with a Himalayan river bird. Ecological Modelling, 120(2-3), 337-347. doi:10.1016/S0304-3800(99)00113-1
Martin, S. (1979). Advertising, Concentration, and Profitability: The Simultaneity Problem. The Bell Journal of Economics, 10 (2), pp. 639-647. http://dx.doi.org/10.2307/3003355
Misra, S. D. (2010). Advertising and Market Structure : A Study of the Indian Consumer Goods and Services Sector. International Research Journal of Finance and Economics, (42).
Nazari, M. & Tajdini, S. (2011). An Empirical Investigation of the Relationship between Market Structure and Advertising Intensity. Interdisciplinary Journal of Contemporary Research in Business, 3(3), 1417-1427.
Pagoulatos, E., & Sorensen, R. (1981). A simultaneous equation analysis of advertising, concentration and profitability. Southern Economic Journal, 47(3), 728–741. http://dx.doi.org/10.2307/1057367
Resende, M. (2006). The determinants of advertising intensity in the Brazilian manufacturing industry: an econometric study. Nova Economia, 16(3), 407-422. http://dx.doi.org/10.1590/S0103-63512006000300002
Scherer, Frederic M. & Ross, David 1990. Industrial Market Structure and Economic Performance, 3rd ed. Houghton Mifflin Company
Strickland, A. D., & Weiss, L. W. (1976). Advertising, concentration, and price-cost margins. The Journal of Political Economy, 84(5), 1109–1121. http://dx.doi.org/10.1086/260499
Sutton, C. J. (1974). Advertising, Concentration and Competition. The Economic Journal, 84(333), pp. 56-69. http://dx.doi.org/10.2307/2230483
Willis, M. (1998). Market share dispersion among leading firms as a determinant of advertising intensity. Review of Industrial Organization, (13), 495-508.
Willis, Michael S.; Rogers, Richard T., Market Share Dispersion among Leading Firms as a Determinant of Advertising Intensity. Review of Industrial Organization, 13(5), 495-508.
DOI: https://doi.org/10.5296/jmr.v4i3.1789
Copyright (c)
Journal of Management Research ISSN 1941-899X
Email: jmr@macrothink.org
Copyright © Macrothink Institute
To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.