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The Ramifications of Nearly Going Dark: A Natural Experiment in the Case of U.S. Generic Orange Juice Advertising

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  • Capps, Oral
  • Bessler, David A.
  • Williams, Gary W.

Abstract

Evaluations of generic advertising programs by commodity check-off programs involve analyses of counterfactual scenarios in which advertising and promotion expenditures are set to zero over the program's history. In actual practice, the counterfactual is rarely realized. We present a case in which such a natural experiment occurred when generic advertising and promotion expenditures for U.S. orange juice were cut nearly to zero. Using structural econometric and autoregression models, we estimate losses in consumption and sales revenue and examine the time required for the market for orange juice to recover from the check-off's strategy of going nearly dark.

Suggested Citation

  • Capps, Oral & Bessler, David A. & Williams, Gary W., 2016. "The Ramifications of Nearly Going Dark: A Natural Experiment in the Case of U.S. Generic Orange Juice Advertising," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(1), pages 68-97, April.
    • Handle: RePEc:cup:agrerw:v:45:y:2016:i:01:p:68-97_00
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    Cited by:

    1. 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).
    2. Batie, Cicely M. & Dennis, Elliott J. & Lubben, Bradley D., 2020. "Do state-level agricultural promotion programs increase agricultural output? The case of the Livestock Friendly County designation program in Nebraska," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304399, Agricultural and Applied Economics Association.
    3. Oral Capps, 2023. "On the robustness/replication of econometric analyses from nonlinear models using various commonplace software packages," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1292-1331, September.
    4. Shew, Aaron M. & Nalley, Lawton L. & Durand-Morat, Alvaro & Meredith, Kylie & Parajuli, Ranjan & Thoma, Greg & Henry, Christopher G., 2021. "Holistically valuing public investments in agricultural water conservation," Agricultural Water Management, Elsevier, vol. 252(C).

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