ADVERTISING COSTS AND SALES PERFORMANCE OF LISTED CONSUMER AND INDUSTRIAL-GOODS COMPANIES IN NIGERIA

A COMPARATIVE ANALYSIS

Abstract

This study comparatively investigated the effect of advertising costs on sales performance of listed consumer and industrial-goods companies in Nigeria. The study focused on ascertaining the extent to which advertising expenses affect the revenue of the study companies. Data were extracted from the most-recent audited annual reports and accounts of listed consumer and industrial-goods companies in Nigeria. Regression analysis technique was employed to analyze the study’s data using Statistical Package for Social Sciences (SPSS), version 23. Findings indicate that advertising expenses exert insignificant positive effect on the revenue of consumer-goods companies in Nigeria, while in the case of industrial-goods companies, advertising expense was found to be significantly and positively related to revenue. The study recommends thatlisted companies in the consumer and industrial-goods sectors in Nigeria should adopt modern and effective advertising techniques in the marketing of their products. While both sectors are expected to enhance their annual advertising expenditures, industrial-goods companies should be more drastic in the upward review of their advert budget compared to their consumer-goods counterparts.