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Promotion Of Primary Products - A View From The Cloister

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  • Quilkey, John J.

Abstract

This paper is a discourse on how promotion may contribute to the efficiency of consumption. The view is taken that, through its addition to the quantity of search with respect to product characteristics, promotion may enable consumers to allocate their expenditures more efficiently and yield additional revenue to producers of the promoted product. The central plea is for consistency in the identification of promotion objectives, the implementation of the promotion program and monitoring of the outcome. In an idiosyncratic way, the promotion objectives are framed as being related to price and income elasticities and it is argued that promotional outcomes should be monitored in terms of these elasticities. Supply shifts may complement promotion strategies to the advantage or disadvantage of producers and the outcomes in terms of producer surplus are examined for particular promotion strategies and shifts in linear supply functions.

Suggested Citation

  • Quilkey, John J., 1986. "Promotion Of Primary Products - A View From The Cloister," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(1), pages 1-15, April.
    • Handle: RePEc:ags:ajaeau:22878
    DOI: 10.22004/ag.econ.22878
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    References listed on IDEAS

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    4. Parish, Ross M., 1963. "Possibilities For Promoting Farm Products," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 7(1), pages 1-8, June.
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    Cited by:

    1. Henry W. Kinnucan & John P. Nichols, 1999. "Symposium on commodity promotion research: Introductory remarks," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 463-464.
    2. Gorny, Rachel A. & Ahmadi-Esfahani, Fredoun Z., 1993. "Structural Change in the Demand for Differentiated Meat Products in Sydney," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), pages 1-9, April.
    3. Henry W. Kinnucan & Yuqing Zheng, 2004. "Advertising's effect on the market demand elasticity: A note," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 181-188.
    4. Richardson, Bob, 1986. "Some Current Issues In The Marketing Of Agricultural Products," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(2-3), pages 1-14, August.
    5. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    6. Kinnucan, Henry W., 2003. "Optimal generic advertising in an imperfectly competitive food industry with variable proportions," Agricultural Economics, Blackwell, vol. 29(2), pages 143-158, October.
    7. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1996. "Profitability Of Incremental Expenditure On Fibre Promotion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-24, December.
    8. Farrell, Terence C. & Tozer, Peter R., 1996. "Strategic Alliances and Marketing Cooperatives: a Lamb Industry Case Study," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(02), pages 1-10, August.

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