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Determinants of Milk Advertising Effectiveness

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  • Stanley R. Thompson
  • Doyle A. Eiler

Abstract

An analysis of the net returns to dairy farmers from generic fluid milk advertising is made in terms of the ability of advertising to increase the blend price of milk in excess of the cost of advertising. The evaluation of the economic effectiveness of generic fluid milk advertising programs extends beyond the measurement of the direct sales response to advertising. Specifically, the class I-class II price differential and the class I utilization rate are found to be extremely important factors influencing the effectiveness of generic milk advertising programs, while the impact of the price elasticity of supply is relatively minor.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:ajagec:v:59:y:1977:i:2:p:330-335.
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    File URL: http://hdl.handle.net/10.2307/1240023
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    Citations

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    Cited by:

    1. Capps, Oral & Schmitz, John D., 1991. "Effect of Generic Advertising on the Demand for Fluid Milk: The Case of the Texas Market Order," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(2), pages 131-140, December.
    2. Sartorius von Bach, Helmke, 1992. "Economic Aspects Of Advertising In Agriculture: A Review," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(1), March.
    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. Meilke, Karl D. & Sarker, Rakhal & Le Roy, Danny G., 1996. "Analyzing The Potential For Increased Trade In Dairy Products: A Canadian Perspective," Proceedings of the 2nd Agricultural and Food Policy Systems Information Workshop, 1996: Understanding Canada\United States Dairy Disputes 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    5. Strak, John & Gill, Len, 1983. "An Economic and Statistical Analysis of Advertising in the Market for Milk and Dairy Products in the U.K," Bulletins 232787, University of Manchester, School of Economics, Agricultural Economics Department.
    6. Cox, Thomas L., 1989. "A Demand Systems Approach to the Analysis of Commodity Promotion Programs: The Case of Canadian Fats and Oils," Staff Papers 200478, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Costa, Ecio de Farias & Epperson, James E. & Huang, Chung L. & McKissick, John C., 2002. "Impacts Of Advertising And Promotion On The Demand For Scanned Purchases Of Vidalia Onions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(1), pages 1-10, March.
    8. Henry W. Kinnucan & Cynda R. Clary, 1995. "Brand versus generic advertising: A conceptual framework with an application to cheese," Agribusiness, John Wiley & Sons, Ltd., vol. 11(4), pages 355-369.
    9. Anderson Reynolds & Arlie McFaul & Ellen Goddard, 1991. "Testing for causality between advertising expenditures and canadian demand for cheese and butter," Agribusiness, John Wiley & Sons, Ltd., vol. 7(3), pages 197-202.
    10. Hui-Shung Chang & Henry Kinnucan, 1990. "Generic advertising of butter in Canada: Optimal advertising levels and returns to producers," Agribusiness, John Wiley & Sons, Ltd., vol. 6(4), pages 345-354.
    11. Economic Research Service, 1984. "Review Of Existing And Alternative Federal Dairy Programs," Staff Reports 276844, United States Department of Agriculture, Economic Research Service.
    12. Smith, Mark E. & Ravenswaay, Eileen O. van & Thompson, Stanley R., 1984. "The Economic Consequences of Food Contamination: A Case Study of Heptachlor Contamination of Oahu Milk: Appendix 1," Agricultural Economic Report Series 201337, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. de Boer, A.J., 1977. "Rural Product Promotion: Economic Aspects Of Promotability, Organization And Public Assistance," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 45(04), pages 1-25, December.
    14. Kinnucan, Henry W. & Forker, Olan D., 1988. "Allocation Of Generic Advertising Funds Among Products: A Sales Maximization Approach," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(1), pages 1-8, April.
    15. Goddard, E.W. & Tielu, A., 1987. "The OMMB'S Fluid Milk Advertising," Working Papers 244815, University of Guelph, Department of Food, Agricultural and Resource Economics.

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