Assistant professor, Dept of Business Management, C V Raman College of Engineering, Bhubaneswar, Odisha, India
Online published on 22 March, 2021.
Purpose: Customer satisfaction is regularly used as a sign of whether customers will come back to store to purchase the same product that shows the customer retention. The present study tries to find out that what is the impact of advertising and the role for customers’ retention and how advertising helps for better return for the stakeholders?
Methodology: The study is based on the annual report of 4 major companies in the fast moving consumers’ goods sector viz, HUL, DABUR, ITC and EMAMI and the data have been taken of 4 years from 2009 to 2012. Data has been analyzed using percentage, diagram, tables and statistical tools correlation has been used for judge the significance level.
Findings: The result indicates that advertisement expenditure make a significant relationship between sales and profit. The study suggests there is a need to take more attention towards advertisement to increase the acquisition and retention level of consumers.
Limitation: The study only analyzed the relation of sales and profit with the advertising expenditure but no other promotional expenditure.
Practical implication: The study gave us the ideas that how advertising make an impact on sale. So those are new entrants in the market as well as those who are trying to build their market in terms of share and attractiveness will get an idea from the study. At the same way it will help them to make their strategy for better customer retention which is key mantra of successful marketers.
Originality: The present study collects the data from major FMCGs companies and the data has been collected from the same angle and from same parameters.
Customer acquisition, Retention, Advertisement expenditure, Sales Turnover, Financial performance
