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Generic Advertising in Concentrated and Differentiated Agricultural Markets

Author

Listed:
  • Han, Sungill
  • Chung, Chanjin
  • Suh, Daeseok

Abstract

This study develops an analytical framework to examine the impact of generic advertising on brand advertising with alternative assumptions on demand changes (shift-up and rotation), product differentiation, market concentration, and relationship between commodity and brand advertising programs. The newly developed model allows one to determine the relationship between generic and brand advertising, which has not been clearly shown in previous studies. Analytical results show that when generic advertising leads to an inelastic demand, generic advertising would help brand advertising and could decrease the optimal brand advertising expenditures. However, when generic advertising leads to an elastic demand, it would negatively affect the profitability of brand advertising.

Suggested Citation

  • Han, Sungill & Chung, Chanjin & Suh, Daeseok, 2011. "Generic Advertising in Concentrated and Differentiated Agricultural Markets," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103739, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103739
    DOI: 10.22004/ag.econ.103739
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    References listed on IDEAS

    as
    1. John Crespi & Stéphan Marette, 2002. "Generic Advertising and Product Differentiation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 691-701.
    2. Simon GB Cowan & Simon Cowan, 2004. "Demand shifts and imperfect competition," Economics Series Working Papers 188, University of Oxford, Department of Economics.
    3. Crespi John M., 2007. "Generic Advertising and Product Differentiation Revisited," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-21, March.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Agribusiness; Demand and Price Analysis; Industrial Organization; Marketing;
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