The effect of marketing spending on sales in the premium car segment: New evidence from Germany

Arbeitspapier

This paper assesses empirically the relationship between marketing expenditures and sales in the premium car segment in Germany. We employ a new data-set which contains model-specific data on sales (i.e. registrations), restyling activities and marketing expenditures at a monthly basis for the years 1998 to 2007. The richness of our data in the time dimension allows for a systematic modeling of product life cycle effects which have been partly ignored in the existing empirical literature. We find a robust positive marketing-sales relationship, even after common characteristics of the product life cycle have been taken into account. Furthermore, our results indicate that the launching of a new model, face lifts and customized packages appear to exert a positive and sizeable effect on sales in the German premium car segment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers in Economics and Finance ; No. 2012-02

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Marketing ; Advertising
• Subject: Marketing expenditure ; panel data models ; automobile industry ; premium car segment ; automotive restyling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Crespo-Cuaresma, Jesus ; Stoeckl, Matthias
• Event: Veröffentlichung
• (who): University of Salzburg, Department of Social Sciences and Economics
• (where): Salzburg
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/71842
• Last update: 10.12.2274, 11:44 AM CET