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Impact Of Generic Fluid Milk And Cheese Advertising On Dairy Markets 1984-99

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  • Kaiser, Harry M.

Abstract

The purpose of this study was to analyze the impacts of generic milk and cheese advertising on dairy markets. The results indicated that generic milk and cheese advertising by dairy farmers and fluid milk processors had major market impacts for the dairy industry. The main conclusion of the study is that farmers and processors are receiving a high return on their investment in generic dairy advertising. The impacts of advertising tend to be more profound in increasing price than quantity, which is due to the inelastic nature of demand for milk and cheese. These estimated impacts need to be compared with the other options producers and processors have for marketing their product (e.g., non-advertising promotion, research, new product development, etc.) in order to determine the optimality of the current investment of advertising. Consequently, these results should be viewed as a first step in the evaluation process.

Suggested Citation

  • Kaiser, Harry M., 2000. "Impact Of Generic Fluid Milk And Cheese Advertising On Dairy Markets 1984-99," Working Papers 292855, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:292855
    DOI: 10.22004/ag.econ.292855
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    Citations

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    Cited by:

    1. Todd M. Schmit & Brian W. Gould & Diansheng Dong & Harry M. Kaiser & Chanjin Chung, 2003. "The Impact of Generic Advertising on U.S. Household Cheese Purchases: A Censored Autocorrelated Regression Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 15-37, March.
    2. Capps, Oral, Jr. & Williams, Gary W. & Dang, Trang, 2010. "Effects of Lamb Promotion on Lamb Demand and Imports," Reports 90492, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    3. Adachi, Kenji & Liu, Donald J., 2006. "Estimating Threshold Effects of Generic Fluid Milk and Cheese Advertising," 2006 Annual meeting, July 23-26, Long Beach, CA 21333, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Schmit, Todd M. & Kaiser, Harry M., 2002. "Modeling The Effects Of Generic Advertising On The Demand For Fluid Milk And Cheese: A Time-Varying Parameter Application," 2002 Annual meeting, July 28-31, Long Beach, CA 19754, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Kim, Kwansoo & Roh, Jae-Sun, 2003. "The Effects Of Advertising On Milk Demand Elasticities And Structural Changes In Korean Milk Markets," 2003 Annual meeting, July 27-30, Montreal, Canada 22155, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Harry M. Kaiser & Todd M. Schmit, 2003. "Distributional effects of generic dairy advertising throughout the marketing channel," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 289-300.

    More about this item

    Keywords

    Livestock Production/Industries;

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