Evaluating the Impact of Advertising on Sales and Profitability in The Apparel Industry
Applications of Management Science
ISBN: 978-1-78756-652-1, eISBN: 978-1-78756-651-4
Publication date: 20 August 2018
Abstract
In this chapter, we evaluate the dollar amount spent on advertising relative to sales, profit margin, and growth rates to study the effectiveness of advertising in today’s retail environment, and whether it leads directly to higher sales and increased profits affording positive earnings for the investor. The study illustrates the use of data envelopment analysis (DEA) technique to benchmark 16 apparel firms to evaluate the effectiveness of their advertising dollars on the sales, profit margin, growth, return on assets (ROA), return on equity (ROE), and return on investment (ROI).
Keywords
Citation
Malhotra, R., Malhotra, D.K., Mariotz, E. and Poteau, R.R. (2018), "Evaluating the Impact of Advertising on Sales and Profitability in The Apparel Industry", Applications of Management Science (Applications of Management Science, Vol. 19), Emerald Publishing Limited, Leeds, pp. 37-55. https://doi.org/10.1108/S0276-897620180000019003
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited