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Determinants of temporal variations in generic advertising effectiveness

Author

Listed:
  • Chanjin Chung

    (Department of Agricultural, Resource, and Managerial Economics, 313 Warren Hall, Cornell University, Ithaca, NY 14853-7801)

  • Harry M. Kaiser

    (Department of Agricultural, Resource, and Managerial Economics, 313 Warren Hall, Cornell University, Ithaca, NY 14853-7801)

Abstract

This study develops a varying-parameter advertising model specifying advertising parameters as a function of advertising strategies and market environments to explain the varying nature of the advertising responses. This model allows researchers to examine the sources of change in advertising effectiveness over time. The model is applied to the New York City fluid milk market for the period from January, 1986 through June, 1995. Results indicate that advertising strategies and market environments play important roles in determining advertising effectiveness. Particularly, demographic factors were more important than economic factors. The results also suggest that when the market conditions are unfavorable due to increase in price, percentage of African Americans, and percentage of food expenditures for eating away from home, advertising becomes more important and effective. [JEL Classification Codes: Q130, M300, and M370] © 2000 John Wiley & Sons, Inc.

Suggested Citation

  • Chanjin Chung & Harry M. Kaiser, 2000. "Determinants of temporal variations in generic advertising effectiveness," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 197-214.
    • Handle: RePEc:wly:agribz:v:16:y:2000:i:2:p:197-214
    DOI: 10.1002/(SICI)1520-6297(200021)16:2<197::AID-AGR5>3.0.CO;2-K
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    References listed on IDEAS

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    1. Reberte, J. Carlos & Kaiser, Harry M. & Lenz, John E. & Forker, Olan D., 1996. "Generic Advertising Wearout: The Case Of The New York City Fluid Milk Campaign," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-11, December.
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    Cited by:

    1. Dong, Diansheng & Schmit, Todd M. & Kaiser, Harry M., 2007. "Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 253-266, October.
    2. 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).
    3. van Voorthuizen, Hilde & Schotzko, R. Thomas & Mittelhammer, Ronald C., 2003. "Measuring The Impact Of Advertising And Promotion: Single-Or Multi-Equation Systems? A Case Study Of The Washington Apple Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(1), pages 1-19, March.
    4. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. van Voorthuizen, Hilde & Schotzko, R. Thomas & Mittelhammer, Ronald C., 2002. "Measuring The Effects Of Generic Price And Non-Price Promotional Activities: The Case Of Washington Apples," 2002 Annual meeting, July 28-31, Long Beach, CA 19637, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. 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.
    7. Schmit, Todd M. & Kaiser, Harry M., 2002. "Measuring the Impacts of Generic Fluid Milk and Cheese Advertising: A Time-Varying Parameter Application," Research Bulletins 122635, Cornell University, Department of Applied Economics and Management.
    8. 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).

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