IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v2y1986i3p293-319.html
   My bibliography  Save this article

The intensity of advertising and other selling expenses in food and tobacco manufacturing: Measurement, determinants, and impacts

Author

Listed:
  • John M. Connor

    (Department of Agricultural Economics, Purdue University, West Lafayette, Indiana)

  • Scott Weimer

    (Graduate student with the Department of Agricultural Economics, Purdue University, West Lafayette, Indiana)

Abstract

The measurement of selling effort in the food processing industries has improved in several ways. An FTC data set on both advertising and promotional expenses is used to estimate some determinants of variations in the intensity of selling effort. They are found to be related to market sales concentration, the number of brands being sold, elaborateness of packaging, and product perishability. A second analysis finds that the intensity of food-manufacturer selling efforts is nonnegatively associated with grocery wholesalers' or retailers' gross margins. The latter finding challenges the view that manufacturer advertising provides information that ultimately benefits consumers through lower retail prices.

Suggested Citation

  • John M. Connor & Scott Weimer, 1986. "The intensity of advertising and other selling expenses in food and tobacco manufacturing: Measurement, determinants, and impacts," Agribusiness, John Wiley & Sons, Ltd., vol. 2(3), pages 293-319.
    • Handle: RePEc:wly:agribz:v:2:y:1986:i:3:p:293-319
    DOI: 10.1002/1520-6297(198623)2:3<293::AID-AGR2720020304>3.0.CO;2-R
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Comanor, William S & Wilson, Thomas A, 1979. "The Effect of Advertising on Competition: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(2), pages 453-476, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 157-171, June.
    2. Roucan-Kane, Maud & Peake, Whitney O., 2007. "Milking The Most From Your Promotional Dollars: An Analysis Of Agribusiness Firms Serving U.S.Agricultural Producers," Working papers 7331, Purdue University, Department of Agricultural Economics.
    3. H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 261-267, January.
    4. Rodgers, Trey & Ali Jafri, S. Hussain & Padberg, Daniel I., 1993. "Price Competition Between National Brand And Private Label Food Products: 1966-1992," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(2), pages 1-7, September.
    5. Van Cong Nguyen & Thi Ngoc Lan Nguyen & Thanh Hang Pham & Song Hoa Vu, 2019. "The Impacts of Selling Expense Structure on Enterprise Growth in Large Enterprises: A Study from Vietnam," JRFM, MDPI, vol. 13(1), pages 1-22, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raquel Ortega-Argilés & Rosina Moreno, 2005. "Firm Competitive Strategies And The Likelihood Of Survival - The Spanish Case," ERSA conference papers ersa05p347, European Regional Science Association.
    2. Wang, Shih-Ching & Lang, Mark, 2015. "The effects of special displays on shopping behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 23(C), pages 125-132.
    3. Thomas Karier, 1990. "The Determinants of U.S. Foreign Production: Unions, Monopoly Power, and Comparative Advantage," Economics Working Paper Archive wp_34, Levy Economics Institute.
    4. Matthias Greuner & David Kamerschen & Peter Klein, 2000. "The Competitive Effects of Advertising in the US Automobile Industry, 1970-94," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(3), pages 245-261.
    5. Nelson Sá, 2015. "Market concentration and persuasive advertising: a theoretical approach," Journal of Economics, Springer, vol. 114(2), pages 127-151, March.
    6. Rakotoarisoa, Manitra A. & Henneberry, Shida Rastegari & Shapouri, Shahla & Trueblood, Michael A., 2003. "The Export Market For Differentiated Processed Agricultural Products: The Role Of Factor Prices And Fixed Costs," 2003 Annual meeting, July 27-30, Montreal, Canada 21964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Animesh Animesh & Vandana Ramachandran & Siva Viswanathan, 2005. "Quality Uncertainty And Adverse Selection In Sponsored Search Markets," Working Papers 05-27, NET Institute, revised Oct 2005.
    8. Alexandre Chirat, 2022. "Consumer sovereignty in the digital society," EconomiX Working Papers 2022-25, University of Paris Nanterre, EconomiX.
    9. Laurent d'Ursel, 1983. "Politiques de « non-prix » : Equilibre et optimum," Revue Économique, Programme National Persée, vol. 34(6), pages 1057-1088.
    10. Michael, Steven C., 2002. "Can a franchise chain coordinate?," Journal of Business Venturing, Elsevier, vol. 17(4), pages 325-341, July.
    11. Ralston, Roy W., 2003. "The effects of customer service, branding, and price on the perceived value of local telephone service," Journal of Business Research, Elsevier, vol. 56(3), pages 201-213, March.
    12. Stone, Michael P. & Miceli, Thomas J., 2012. "Optimal attorney advertising," International Review of Law and Economics, Elsevier, vol. 32(3), pages 329-338.
    13. Vakratsas, Demetrios, 2008. "The effects of advertising, prices and distribution on market share volatility," European Journal of Operational Research, Elsevier, vol. 187(1), pages 283-293, May.
    14. Subhadip Chakrabarti & Hans Haller, 2011. "An Analysis Of Advertising Wars," Manchester School, University of Manchester, vol. 79(1), pages 100-124, January.
    15. Cho, Joonmo, 2005. "Human resource management, corporate governance structure and corporate performance in Korea: a comparative analysis of Japan, US and Korea," Japan and the World Economy, Elsevier, vol. 17(4), pages 417-430, December.
    16. Sellen, Daniel & Weerahewa, Jeevika & Goddard, Ellen, 1995. "Impact of Advertising on Competition in the U.S. Coffee Market," Working Papers 244805, University of Guelph, Department of Food, Agricultural and Resource Economics.
    17. Joel Waldfogel & Jeffrey Milyo, 1999. "The Effect of Price Advertising on Prices: Evidence in the Wake of 44 Liquormart," American Economic Review, American Economic Association, vol. 89(5), pages 1081-1096, December.
    18. Chan, Tat Y. & Narasimhan, Chakravarthi & Yoon, Yeujun, 2017. "Advertising and price competition in a manufacturer-retailer channel," International Journal of Research in Marketing, Elsevier, vol. 34(3), pages 694-716.
    19. Takada, Hirokazu & Bass, Frank M., 1998. "Multiple Time Series Analysis of Competitive Marketing Behavior," Journal of Business Research, Elsevier, vol. 43(2), pages 97-107, October.
    20. Agarwal, Rajshree & Gort, Michael, 2001. "First-Mover Advantage and the Speed of Competitive Entry, 1887-1986," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 161-177, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:2:y:1986:i:3:p:293-319. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.