PROFITABILITY, ADVERTISING INTENSITY AND CONCENTRATION RATIO IN INDONESIAN CIGARETTE INDUSTRY (2000 -2013)

This study aimed to invest the relationship of structure, behavior and performance on cigarette industry in Indonesia. The variable used in this research is concentration ratio that used CR4 to measure industry structure, advertising intensity of four companies that included in CR4 to measure promotion behavior, Price Cost Margin (PCM) and profitability of four companies (ROS) included in CR4 to measure industry performance. Descriptive analysis between Price Cost Margin (PCM) and concentration of cigarette industry shows the direction of inconsistent relationship but for 23 years the direction of change is more positive than negative sign. Otherwise, the relationship between Return on Sales (ROS) with industrial concentration shows more negative sign than positive sign.