PROFITABILITY, ADVERTISING INTENSITY AND CONCENTRATION RATIO IN INDONESIAN CIGARETTE INDUSTRY (2000 -2013)
DOI:
https://doi.org/10.29121/granthaalayah.v6.i3.2018.1522Keywords:
Advertising Intensity, Concentration Ratio, Price Cost Margin and Return on SalesAbstract [English]
This study aimed to invest the relationship of structure, behavior and performance on cigarette industry in Indonesia. The variable used in this research is concentration ratio that used CR4 to measure industry structure, advertising intensity of four companies that included in CR4 to measure promotion behavior, Price Cost Margin (PCM) and profitability of four companies (ROS) included in CR4 to measure industry performance. Descriptive analysis between Price Cost Margin (PCM) and concentration of cigarette industry shows the direction of inconsistent relationship but for 23 years the direction of change is more positive than negative sign. Otherwise, the relationship between Return on Sales (ROS) with industrial concentration shows more negative sign than positive sign.
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References
Martin, Stephen. 1979. Advertising: Concentration, and Profitability: The Simultaneity Problem. The Bell Journal of Economics, Volume 10, Issue 2, Autum. DOI: https://doi.org/10.2307/3003355
Muslim Erlinda , Vivi Evertina, dan Rahmat Nurcahyo. 2008. Stucture, Conduct, and Performance Analysis in Palm Cooking Oil Industry in Indonesia Using Structure Conduct Performance Paradigm (SCP), Preceeding International Seminar on Industrial Engineering and Management, 2008
Peter, Asch. 1979, The Role of Advertising in Changing Concnetration, Shourther Economic Journal (pre 1981); Juli 1979.
Stricklend, Allyn.D dan Weiss, Leonard W. 1976. Advertising, Concentration, and Price-Cost- Margin, The Journal of Political Economy, Vol 84, No 5, (Okt, 1976) pp 1109-1122.
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