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Effectiveness of generic and brand advertising on fresh and processed potato products

Author

Listed:
  • Eugene Jones

    (Department of Agricultural Economics and Rural Sociology, The Ohio State University)

  • Ronald W. Ward

    (Food and Resource Economics Department, University of Florida)

Abstract

Since 1973, potato producers have used commodity advertising to increase the demand and value perception of fresh potatoes and processed potato products. Advertising dollars for generic promotion currently total $3.7 million annually, and these funds are generated from a check-off program which assesses producers 2.3 cents per hundredweight. Potato processors allocate an additional $46 million annually to advertise branded potato products. This research examines the effectiveness of these advertising dollars in increasing demand for potatoes. Results show that both brand and generic advertising are effective in stimulating demand for all processed potato products. Generic advertising does not positively impact the demand for fresh potatoes.

Suggested Citation

  • Eugene Jones & Ronald W. Ward, 1989. "Effectiveness of generic and brand advertising on fresh and processed potato products," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 523-536.
    • Handle: RePEc:wly:agribz:v:5:y:1989:i:5:p:523-536
    DOI: 10.1002/1520-6297(198909)5:5<523::AID-AGR2720050510>3.0.CO;2-X
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    References listed on IDEAS

    as
    1. Nichols, Len M, 1985. "Advertising and Economic Welfare," American Economic Review, American Economic Association, vol. 75(1), pages 213-218, March.
    2. Ronald W. Ward & Julio Chang & Stan Thompson, 1985. "Commodity advertising: Theoretical issues relating to generic and brand promotions," Agribusiness, John Wiley & Sons, Ltd., vol. 1(4), pages 269-276.
    3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
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    Citations

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    Cited by:

    1. Timothy J. Richards & X. M. Gao & Paul M. Patterson, 1998. "The demand for value-added and convenience: A household production approach," Agribusiness, John Wiley & Sons, Ltd., vol. 14(5), pages 363-378.
    2. X. M. Gao & Timothy Richards & Albert Kagan, 1997. "A latent variable model of consumer taste determination and taste change for complex carbohydrates," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1643-1654.
    3. Lee, Jonq-Ying & Brown, Mark G., 1990. "Lag Structures in Commodity Advertising Research," 1990 Annual meeting, August 5-8, Vancouver, Canada 271019, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Sylvie Tchumtchoua & Ronald W. Cotterill, 2010. "Optimal Brand and Generic Advertising Policies in a Dynamic Differentiated Product Oligopoly," Food Marketing Policy Center Research Reports 126, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    5. Palmer, Adrian J., 1995. "Relationship marketing: Local implementation of a universal concept," International Business Review, Elsevier, vol. 4(4), pages 471-481.
    6. Guenthner, Joseph F. & Lin, Biing-Hwan & Levi, Annette E., 1991. "The Influence Of Microwave Ovens On The Demand For Fresh And Frozen Potatoes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 22(3), pages 1-8, September.
    7. 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.
    8. Richards, Timothy J. & Gao, X.M. & Patternson, Paul M., 1996. "Branded and Generic Promotion in a Complex Carbohydrate Demand System: A Structural Latent Variable Approach to Promotion Evaluation," Economic Evaluation of Commodity Promotion Programs in the Current Legal and Political Environment, October 7-8, 1996, Monterey, California 279667, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    9. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    10. Jones, Eugene, 2001. "Agricultural Economics Research And Its Usefulness To Private Firms: Some Unsolicited Observations," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(1), pages 1-7, March.

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