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The relationship between advertising and household loans
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2008 (English)Independent thesis Advanced level (degree of Magister), 10 points / 15 hpStudent thesis
Abstract [en]

Advertising expenditures are increasing on a yearly basis. An interesting question emerges from this: What are the macroeconomic effects of increasing advertising spending? Does the aggregate consumption increase or does it only rearrange consumption between different products and markets? The relationship between advertising and consumption was found in the literature, this relationship was further developed and the relationship between advertising and household loans emerged as an interesting subject.

An econometric analysis method was used to test the relationship between the aggregated advertising expenditure and the aggregated sum of household loans, in order to investigate whether advertising spending cause changes in the use of total household loans in Sweden.

The research did not conclude that aggregate advertising spending causes changes in the use of total household loans in Sweden. However, evidence was found which supports that household loans cause advertising expenditures. An implication of the findings is that the relationship between aggregated sum of household loans and advertising might be as interrelated as between advertising and consumption, and should be further researched. Another implication is that it might not be appropriate to purely look at advertising and consumption to increase the further understanding of the two variables. Introducing household loans as a funding variable to the consumption function can be seen as a new and interesting approach.

Place, publisher, year, edition, pages
2008. , 68 p.
Keyword [sv]
Advertising, Galbrathian argument, Loans, Granger Causality, Macroeconomy, Marketing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-1150OAI: oai:DiVA.org:hj-1150DiVA: diva2:3590
Uppsok
samhälle/juridik
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Examiners
Available from: 2008-02-25 Created: 2008-02-25

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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf