Principle Of Relative Constancy Research Articles

O MERCADO PUBLICITÁRIO NO BRASIL E SEUS DETERMINANTES MACROECONÔMICOS: UM ESTUDO A PARTIR DO PRINCÍPIO DA CONSTÂNCIA RELATIVA

Nos últimos anos, o crescimento do mercado publicitário brasileiro é notável, contudo não se encontram estudos que busquem uma compreensão mais ampla dessa dinâmica. Tradicionalmente, emprega-se o Principio da Constância Relativa (PCR), o qual estabelece uma relação entre o desempenho do PIB e os gastos com propaganda. Para o período analisado (1997-2010), o PCR não encontrou suporte empírico. Para aprofundar a análise, empregou-se a Análise de Componentes Principais a fim de mensurar a influência de outros fatores macroeconômicos sobre o desempenho do mercado publicitário brasileiro. Os resultados sugerem que a dinâmica do mercado interno/externo (associado à expansão industrial e à queda do desemprego) explica 41% da variabilidade total dos dados, constituindo a principal explicação para as despesas em propaganda no período.

Relative Constancy of Advertising Spending

This study empirically examines the principle of relative constancy (PRC) across more than 70 nations over time (1991-2001). Focusing on the relationship between advertising spending and national economy as reflected by GDP, the authors found that while GDP is the most obvious explanatory variable for advertising spending, the relationship is not proportionate and there is the potential that other variables also affect a country’s advertising expenditures. The degree of applicability of the PRC might be different depending on the types of media and the characteristics of the nations as the notion of the PRC seems to be more apparent in developed nations.

The Failure of Project Eyeball: A Case of Product Overpricingor Market Overcrowding?

The closure in mid-2001 by Singapore Press Holdings (SPH) of its experimental tabloid newspaper, Project Eyeball, after less than 1 year of publication, was popularly attributed to a pair of market factors: its 80-cent cover price and competition from a pair of free tabloids that entered the market hot on its heels. Although pricing and competition were doubtless important contributing factors to Project Eyeball's rapid demise, a pair of additional economic concepts emerges on closer examination of the newspaper's brief history and may provide additional clues to its failure. One is the principle of relative constancy, which held, until it was disproved in the 1980s, that the level of expenditures on media remained fairly constant as a percentage of the overall economy. The other is the influence on management practices of share prices of publicly traded newspaper companies, into which category SPH falls. Considering these factors in addition to price and competition helps to better explain the rapid demise of Project Eyeball.

The Effect of VCR on Major Media Markets in Korea, 1961–1993

By applying the Principle of Relative Constancy, this article extends prior research about consumer expenditures on mass media. To analyze four major mass media markets in Korea, including newspaper, movie, television, and VCR, this study employs two complementary methods: a regression analysis to test the Relative Constancy Hypothesis and market scale and elasticity analyses to measure the level of fluctuation of media markets during selected time periods.

Newspaper Readership v. News Emails

Migrating from print to online media has been a difficult, financially unsuccessful endeavour thus far for most media organisations. The lack of a consistently reliable revenue stream and failure to satisfy information needs are two major reasons why. Of concern is displacing existing revenue streams with a new medium. This study, the first to look at industry trade publishing on the internet, is an attempt to find out whether recipients of daily email news updates from furniture industry trade publication Furniture/Today spend less time with the weekly print edition. To find the answer, 678 recipients via email of FurniturelToday's eDaily news update each morning were surveyed in March 2001. The study puts to an empirical test the principle of relative constancy, which theorises that consumers spend a relatively fixed amount of money on and time with media.

Domestic consumer expenditures for consumer books: 1984–1994

Between 1984 and 1994, the U.S. consumer marketplace was transformed with the introduction or wide acceptance of personal computers, CD-ROMs, VCRs, video-cassettes, the Internet, E-mail, cable television, etc. U.S. Department of Commerce data indicated conclusively that these products and services competed directly for media usage and media expenditures with all other media formats, including consumer books. Many media economics scholars who investigated media usage and expenditures came to believe that consumer allocations for various media products and services remained at a “constant” percent of Domestic Consumer Expenditures (DCE), which they termed the “Principle of Relative Constancy.”

Theory, Economics, Measurement, and the Principle of Relative Constancy

This article discusses the theoretical problems posed by the Principle of Relative Constancy (PRC). We argue that the PRC suffers from imprecision in definition of terms, measurement problems, and a failure to adequately meet the purposes of theory. We also argue that despite the PRC's important contributions to media economics research, existing economic theories and models are more useful in explaining consumer spending.

The Theory of the Niche and Spending on Mass media: The Case of the "Video Revolution"

This article briefly reviews research on the principle of relative constancy and concludes that further research using aggregate consumer and advertiser spending data should be suspended because the principle does not represent a theoretically based hypothesis but is simply an unexplained empirical generalization. Instead, I propose that further theory building and research is necessary to explain consumer and advertiser spending on the media and offer suggestions on the conduct of such research. I employ the theory of the niche and elements of the theory to explain the anomaly of the "video revolution" that stands as a major exception to constancy.

Beyond the Principle of Relative Constancy: Determinants of Consumer Mass Media Expenditures in Belgium

This article goes beyond the principle of relative constancy (PRC) by testing 2 new models of consumer mass media spending using 1953-1991 Belgian data. Unlike traditional PRC models, which have focused exclusively on the long-term relationship between income and mass media spending, these 2 models contain additional regressors (price, population, unemployment, and interest rate) in current (Model 1) and lagged (Model 2) form. Time-series regression analyses were performed to determine which variables significantly predict changes in consumer mass media expenditures. Model 1 regressions revealed that price and population were better predictors of mass media expenditures than income, stressing the importance of developing models of consumer mass media spending that go beyond a simple mass media expenditures-income relation. Model 2 regressions showed that lagged variables played an important role in explaining changes in mass media expenditures, indicating the need for incorporating lags in future mass media spending work.

A Theoretical and Methodoloical Critique of the Principle of Relative Constancy

This article revisits the theoretical assumptions of the principle of relative constancy (PRC). This principle, or hypothesis, holds that consumers spend a constant fraction of their income on mass media over time (constancy assumption), although they are expected to alter their spending patterns within mass media categories in response to the introduction of new mass media products or services (functional equivalence assumption). But application of demand theory to the PRC reveals that whereas the functional equivalence assumption can be phrased in economic terms, there is no such validation for the constancy assumption. That assumption was found to be inconsistent with the Engel law/curve in that this traditional microeconomic model of consumer choice does not posit, as does the PRC, a proportional relationship between expenditures on mass media and income. Furthermore, the empirical literature reviewed here suggests mixed support for the PRC, casting more doubts on the validity of the PRC as a theoretically grounded, empirically determined hypothesis. The article identifies and discusses five methodological factors that may explain why PRC studies offer conflicting evidence. Finally, it proposes a series of theoretical and methodological recommendations for conducting future research on consumer mass media expenditures.

Revisiting the Principle of Relative Constancy

This study extends prior consumer mass media expenditures research by proposing two new econometric models for testing the principle of relative constancy (PRC). The PRC posits that the proportion of income devoted to the mass media will not change significantly over time, although some variations among mass media categories may occur to enable new communication technologies to succeed in the marketplace. Regression and cointegration analyses were conducted with Belgian mass media expenditure data from 1953 to 1991. Results revealed that the PRC failed to be supported for both models. Because of the PRC's lack of economic foundation and ambiguous empirical evidence, the authors suggest a shift in emphasis from PRC research to development of alternative mass media expenditure models.

Technology collides with relative constancy: The pattern of adoption for a new medium

This article examines adoption of television in light of McCombs’ principle of relative constancy and Rogers’ work on diffusion of innovations. It reveals a normal pattern of reallocation of consumer resources from old media to the new one, but also a temporary diversion of resources from non‐media uses during early adoption.

Mass Media Expenditures in Norway: The Principle of Relative Constancy Revisited

Mass Media Expenditures in Norway: The Principle of Relative Constancy Revisited