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III. EUROPEAN CONFERENCE ON SCIENCE, ART & CULTURE
ECSAC’18 – NORTHERN CYPRUS
Gazimağusa, October12-14, 2018

OP-32
DETERMINATION OF INCREASING EXPENDITURES OF
ADVERTISING: KOSOVO CASE

Luan VARDARI*, Festim TAFOLLI*

*Prizren Ukshin Hoti University, Prizren Kosovo

One of the main challenges in the world of marketing is to understand the effectiveness of advertising on sales.
There are different models that attempt to give answers, among the best known are DAGMAR, WINER, AIDA and
Hierarchy of Effects. The purpose of the study is to examine the market of Kosovo analyzing a group of companies
and the main tools of advertising that they use and their effect on business sales. For this purpose, the data from the
financial statements of the enterprises of the Kosovo statistical agency will be examined aiming to elicit the extent of
increase in sales base on advertising expenditures. The entities will be analyzed according to the data obtained from
the 6 month reports of 10 operators between 2010-2016. A dynamic panel data analysis method will be applied to this
research. Based on the results of panel regression and Hausman analysis on 16 data sets consisting 6-month period
data sets of 10 enterprises, it will be determined how much the advertising expenditures have charged the budget of
businesses in Kosovo. The result is very important because it defines the company’s budget to be devoted to advertising
and/or to consider different more effective instruments to allocate for the corporate communication.

Keywords: Panel Regression, Sales, Advertising Spend, Hausman, Main Marketing Models,

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AKADEMI .