Background:Today, there are various theories regarding the relationship between the impact of advertising and packaging expenses on the sales volume of manufacturing firms through their influence on consumer behavior. Additionally, structural market factors, such as the level of industrial concentration, can also have a different impact on the sales of industrial firms.
Aim:The aim of this study is to determine the nature and extent of the impact of advertising expenditures, packaging costs, and industrial concentration on the sales volume of the food and beverage industries.
Methodology:This study is conducted using data related to Iran’s food and beverage industries at the four-digit ISIC code level over the period 2002–2022. In this thesis, stationarity and cointegration tests are performed prior to estimating the model coefficients. Due to the non-stationarity of some variables and the existence of cointegration among them, the Fully Modified Ordinary Least Squares (FMOLS) technique for panel data is employed to determine the impact of the explanatory variables (advertising expenditures, packaging costs, and industrial concentration) on the dependent variable (sales volume of the food and beverage industries).
Conclusions:The results of the study indicate that all key variables advertising expenditures, packaging costs, and industrial concentration have a significant and positive impact on the sales volume of the food and beverage industries. Specifically, a 1% increase in advertising expenditures, packaging costs, and the industrial concentration index, assuming other factors remain constant, leads to an increase in sales by approximately 0.19%, 0.58%, and 0.07%, respectively respectively.Additionally, the findings show that a 1% increase in investment and research & development, holding other factors constant, results in an increase in sales by approximately 0.06% and 0.20%, respectively.