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A study of demand response to grocery advertising of fresh California-Arizona navel oranges

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  • Nicholas J. Powers

    (Economic Research Service, US Department of Agriculture)

Abstract

An econometric analysis shows that grocery advertising expands the demand for fresh California-Arizona navel oranges. With advertising, grocers demand a greater quantity of fresh navels at every buying price. Navel grocery advertising carries over for only one week after the initial week the advertisements appear as compared to one to nine months for most brand and generic advertising of agricultural commodities. The peak response of navel demand to grocery advertising occurs during the week the advertising appears, while the peak response of brand and generic advertising gradually occurs several months after the advertising.

Suggested Citation

  • Nicholas J. Powers, 1989. "A study of demand response to grocery advertising of fresh California-Arizona navel oranges," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 423-435.
    • Handle: RePEc:wly:agribz:v:5:y:1989:i:5:p:423-435
    DOI: 10.1002/1520-6297(198909)5:5<423::AID-AGR2720050502>3.0.CO;2-T
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    References listed on IDEAS

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    1. Marc Nerlove & Frederick V. Waugh, 1961. "Advertising without Supply Control: Some Implications of a Study of the Advertising of Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 813-837.
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    Cited by:

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    2. Goddard, Ellen W. & Freebairn, John W. & Griffith, Garry R., 2003. "Issues in evaluating generic promotion in the food chain," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57871, Australian Agricultural and Resource Economics Society.
    3. Siskos, Y. & Matsatsinis, N. F. & Baourakis, G., 2001. "Multicriteria analysis in agricultural marketing: The case of French olive oil market," European Journal of Operational Research, Elsevier, vol. 130(2), pages 315-331, April.

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