Effect Of Advertising Cost On The Profitability Of Consumer Goods In Calabar Municipality, Cross River State, Nigeria.
Inah, Egu Usang Ph.D
Department of Accounting, Faculty of Management Sciences, University of Calabar.
Akeke, Mercy N. G. Ph.D
Department of Vocational Education, Faculty of Vocational and Science Education, University of Calabar.
Ekunke, Johnson Awhen
Department of Vocational Education, Faculty of Vocational and Science Education, University of Calabar.
Keywords: Advertising cost, Consumer goods, Media cost, Production cost, Overhead cost
Abstract
The purpose of the study was to examine the effect of Advertising cost on the profitability of consumer goods in Calabar Municipal. Survey research design was used with population of 4,742 registered businesses in Calabar Municipal from which 250 were sampled using purposive sampling technique. The instrument for data collection and analysis was a structured questionnaire capturing the variables of interest). The Cronbach alpha reliability technique was adopted to estimate the internal reliability which yielded a coefficient of 0.82. Simple linear regression was used which shows a significant relationship between media advertising cost and the profitability of consumer goods in Calabar Municipality, Cross River. From the findings, it was recommended that companies need to maintain a cost-effective system of advertising with competent personnel, adopt cost effective means of advertising to increase profitability but with the objective of maintaining good image of the company.