A Empirical Study Of The Relationship Between Advertising Expenditure And Car Sales

In recent years, Chinese auto market is at bloom while China has entered the auto age. Automotive advertising has an important impact on vehicle sales as an important marketing tool using by automobile manufacturers. In this paper, considering the differences in prices as well as performance of different kinds of vehicles, the author emphasises the impact of advertising on car sales. In empirical research the author also analysises the characteristics of advertising behavior of the automotive industry in our country , and estimates the impact of automotive advertising on auto sales. Empirical studies in this paper uses panel data for regression estimates, and in the extended model the author uses varying coefficient models and dynamic hysteresis models to enhance the explanatory. Finally, a conclusions has been drawn: advertising investment has a positive correlation with sales; high-quality cars are more willing to be advertised than low-quality cars; the elasticity of long-term advertising in automotive industry is higher than short-term ones.