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RESEARCH PRODUCT

Advertising expenditure as a determinant of a brand's share of the market (A case with low and high involvement products)

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Masteroppgave i økonomi og administrasjon 2007 - Høgskolen i Agder, Kristiansand This study attempted to determine the impact of brand’s advertising expenditure on its share of the market and its variation, if any, across different product categories (i.e., lowinvolvement vs. high- involvement products). In this endeavor, the study challenged common belief amongst marketers, that the normal and stable relationship for an advertised brand is a parity of share of voice and share of market. The findings of the study revealed a positive correlation between a brand’s share of voice and its share of market with regard to both lowinvolvement and high-involvement products, with the strength of this correlation being greater in respect of low-involvement products. The study also provided valuable insights that marketers could utilize to develop more focused marketing strategies which may enable them to compete more effectively in the increasingly competitive market.