Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/71842 
Year of Publication: 
2012
Series/Report no.: 
Working Papers in Economics and Finance No. 2012-02
Publisher: 
University of Salzburg, Department of Social Sciences and Economics, Salzburg
Abstract: 
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.
Subjects: 
Marketing expenditure
panel data models
automobile industry
premium car segment
automotive restyling
JEL: 
D43
M31
M37
Document Type: 
Working Paper

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