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Determinants of temporal variations in generic advertising effectiveness

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Author Info

  • 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)

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    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.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 16 (2000)
    Issue (Month): 2 ()
    Pages: 197-214

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    Handle: RePEc:wly:agribz:v:16:y:2000:i:2:p:197-214

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    References

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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(02), December.
    2. 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), April.
    3. 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," Research Bulletins 122816, Cornell University, Department of Applied Economics and Management.
    4. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    5. Philip R. Vande Kamp & Harry M. Kaiser, 1999. "Irreversibility in Advertising-Demand Response Functions: An Application to Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 385-396.
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    Cited by:
    1. 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).
    2. 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, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October.
    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(01), March.
    4. 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).

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