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Effect Of Generic Advertising On The Demand For Fluid Milk: The Case Of The Texas Market Order

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  • Capps, Oral, Jr.
  • Schmitz, John D.

Abstract

This analysis indicates that generic advertising expenditures, ceteris paribus, generated rightward shifts in demand for fluid milk in the Texas Market Order over the period January 1980 to September 1988. Generally, the results from this study are in agreement with previous research efforts which suggest that generic advertising can increase the demand for fluid milk. Importantly, in this analysis, the impacts of television and radio advertising have been effectively disentangled. Television advertising generates a response that wears off more quickly than radio advertising. Also, the long-run effect of radio advertising is bout 1.75 times greater than the long-run effect of television advertising.

Suggested Citation

  • Capps, Oral, Jr. & Schmitz, John D., 1991. "Effect Of Generic Advertising On The Demand For Fluid Milk: The Case Of The Texas Market Order," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-10, December.
    • Handle: RePEc:ags:sojoae:30043
    DOI: 10.22004/ag.econ.30043
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    1. Knutson, Ronald & Schwart, Robert & Smith, Edward G., 1988. "Milk Self-Sufficiency Desirable Goal?," Staff Reports 257917, Texas A&M University, Agricultural and Food Policy Center.
    2. Henry Kinnucan & Olan D. Forker, 1986. "Seasonality in the Consumer Response to Milk Advertising with Implications for Milk Promotion Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 562-571.
    3. Kinnucan, Henry W., 1986. "Demographic Versus Media Advertising Effects On Milk Demand: The Case Of The New York City Market," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(1), pages 1-9, April.
    4. Ronald W. Ward & Julio Chang & Stan Thompson, 1985. "Commodity advertising: Theoretical issues relating to generic and brand promotions," Agribusiness, John Wiley & Sons, Ltd., vol. 1(4), pages 269-276.
    5. H.H. Jensen & T. Kesavan & S.R. Johnson, 1992. "Measuring the Impact of Health Awareness on Food Demand," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(2), pages 299-312.
    6. Donald J. Liu & Olan D. Forker, 1988. "Generic Fluid Milk Advertising, Demand Expansion, and Supply Response: The Case of New York City," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 229-236.
    7. Henry Kinnucan, 1987. "Effect of Canadian Advertising on MilK Demand: The Case of the Buffalo, New York Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 35(1), pages 181-196, March.
    8. Ronald W. Ward & William F. McDonald, 1986. "Effectiveness of generic milk advertising: A ten region study," Agribusiness, John Wiley & Sons, Ltd., vol. 2(1), pages 77-89.
    9. Stanley R. Thompson & Doyle A. Eiler, 1977. "Determinants of Milk Advertising Effectiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(2), pages 330-335.
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    Cited by:

    1. Henry W. Kinnucan & Yuliang Miao, 1999. "Media-specific returns to generic advertising: The case of catfish," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 81-99.
    2. Bakhtavoryan, Rafael & Capps, Oral & Salin, Victoria, 2014. "The Impact of Food Safety Incidents Across Brands: The Case of the Peter Pan Peanut Butter Recall," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 559-573, November.
    3. Capps, O., . "Targeted Advertising and Promotion Campaigns_A Case Study of the National Pork Board," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 38(1).
    4. Coulibaly, Nouhoun & Brorsen, B. Wade, 1998. "Resolving The Conflicts Between Previous Meat Generic Advertising Studies," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20897, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Gvillo, Rejeana & Capps, Oral, Jr. & Dharmasena, Senarath, 2014. "Dynamics of Advertising and Demand for Fluid Milk in the United States: An Incomplete Demand Approach," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170265, Agricultural and Applied Economics Association.
    6. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2014. "Dynamics of Consumer Response to Food Contamination: The 2007 Peanut Butter Recall," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-16, July.
    7. Pritchett, James G. & Liu, Donald J. & Kaiser, Harry M., 1998. "Optimal Choice Of Generic Milk Advertising Expenditures By Media Outlet," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-15, July.

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    Keywords

    Demand and Price Analysis; Marketing;

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