Advertising and Retail Promotion of Washington Apples: A Structural Latent Variable Approach to Promotion Evaluation
Abstract"Commodity promotion" consists of many activities, each designed to contribute to a consumer's product knowledge or influence tastes. However, both knowledge and tastes are unobservable, or latent, variables influencing demand. This paper specifies a dynamic structural model of fresh fruit demand that treats promotion and other socioeconomic variables as "causal" variables influencing these latent variables. Estimating this state-space model using a Kalman filter approach provides estimates of both the system parameters and a latent variable series. The results show that these latent effects contribute positively to apple and other fruit consumption, while reducing banana consumption.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Arizona State University, Morrison School of Agribusiness and Resource Management in its series Working Papers with number 28547.
Date of creation: 1998
Date of revision:
commodity promotion; demand system; DYMIMIC; fresh fruit; Kalman filter; LA/AIDS; latent variables; Marketing;
Other versions of this item:
- Richards, Timothy J. & Gao, Xiaoming & Patterson, Paul M., 1999. "Advertising And Retail Promotion Of Washington Apples: A Structural Latent Variable Approach To Promotion Evaluation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(01), April.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Engle, Robert F. & Lilien, David M. & Watson, Mark, 1985. "A dymimic model of housing price determination," Journal of Econometrics, Elsevier, vol. 28(3), pages 307-326, June.
- Burmeister, Edwin & Wall, Kent D., 1982. "Kalman filtering estimation of unobserved rational expectations with an application to the German hyperinflation," Journal of Econometrics, Elsevier, vol. 20(2), pages 255-284, November.
- Jonq-Ying Lee & James L. Seale & Pattana A. Jierwiriyapant, 1990. "Do trade agreements help US exports? A study of the Japanese citrus industry," Agribusiness, John Wiley & Sons, Ltd., vol. 6(5), pages 505-514.
- Hui-Shung Chang & Henry Kinnucan, 1990. "Advertising and Structural Change in the Demand for Butter in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(2), pages 295-308, 07.
- Watson, Mark W. & Engle, Robert F., 1983. "Alternative algorithms for the estimation of dynamic factor, mimic and varying coefficient regression models," Journal of Econometrics, Elsevier, vol. 23(3), pages 385-400, December.
- Pollak, Robert A & Wales, Terence J, 1980. "Comparison of the Quadratic Expenditure System and Translog Demand Systems with Alternative Specifications of Demographic Effects," Econometrica, Econometric Society, vol. 48(3), pages 595-612, April.
- Alston, Julian M. & Chalfant, James A. & Christian, Jason E. & Meng, Erika C.H. & Piggott, Nicholas E., 1997. "The California Table Grape Commission's Promotion Program: An Evaluation," Monographs, University of California, Davis, Giannini Foundation, number 11932.
- Durham, Catherine A. & Eales, James S., 2006.
"Demand Elasticities for Fresh Fruit at the Retail Level,"
2006 Annual meeting, July 23-26, Long Beach, CA
21099, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Catherine Durham & James Eales, 2010. "Demand elasticities for fresh fruit at the retail level," Applied Economics, Taylor & Francis Journals, vol. 42(11), pages 1345-1354.
- Richards, Timothy J. & Patterson, Paul M., 2003.
"A Bilateral Comparison Of Fruit And Vegetable Consumption: U.S And Canada,"
2003 Annual meeting, July 27-30, Montreal, Canada
21891, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Richards, Timothy J. & Patterson, Paul M., 2004. "A Bilateral Comparison of Fruit and Vegetable Consumption: U.S. and Canada," Working Papers 28538, Arizona State University, Morrison School of Agribusiness and Resource Management.
- Quagrainie, Kwamena K. & McCluskey, Jill J. & Loureiro, Maria L., 2001. "Reputation And State Commodity Promotion: The Case Of Washington Apples," 2001 Annual meeting, August 5-8, Chicago, IL 20592, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Acharya, Ram N. & Molina, Ignacio, 2004. "Testing For A Change In Consumer Tastes For Fresh Fruits And Vegetables: A Structural Latent Variable Approach," 2004 Annual meeting, August 1-4, Denver, CO 20127, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Working Papers 162515, Robert Mondavi Institute Center for Wine Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.