Sinta Wardani; Ujang Sumarwan; Tb. Nur Ahmad Maulana

doi:10.14414/jebav.v16i3.223

THE EFFECT OF PROMOTION COST AND DISTRIBUTION COST ON COMPANYS SALES OF THE FAST MOVING CONSUMER GOODS INDUSTRIES

Sinta Wardani, Ujang Sumarwan, Tb. Nur Ahmad Maulana

Abstract

The purposes of this study are (1) to analyze the effect of the promotion cost and distributioncost on companys sales partially and simultaneously (2) to formulate managerial implications related to the results of this study. Data was collected from 29 companies which separated into 18 foreign direct investments companies and 11 domestic investments companies.Secondary data was gathered through consolidated financial statements companies whichlisted on IDX for the 2007-2012 years ended. Data panel analysis fixed effect model was usedto estimate the effects of promotion cost and distribution cost. Based on the FEM analysis, allindependent variables of foreign direct investment and domestic investment companies hassignificant effect on their sales. The results of this study suggestedfor managerial implications to increase the efficiency of promotion cost and distribution cost.

Keywords

Promotion Cost;Distribution Cost;Companies' sales;Fixed Effect Models

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DOI: http://dx.doi.org/10.14414/jebav.v16i3.223

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