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Effects of Advertising on the Demand for Cheese and Fluid Milk

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  • Blisard, William N.
  • Sun, Theresa
  • Blaylock, James R.

Abstract

An advertising campaign raised fluid milk sales by about 5,975.4 million pounds during September 1984-September 1990. Natural and processed cheese (consumed at home) sales rose by about 23 and 229 million pounds in the same period. An assessment of 15 cents per hundredweight of milk sold commercially, mandated by the Dairy and Tobacco Adjustment Act of 1983, funded the increase in advertising. The authors use econometric demand models to introduce variables that would offset or complement dairy-centered advertising. In both branded and generic advertising, changes in market price, income, and the availability of substitute goods are factors that influence the demand for natural and processed cheese.

Suggested Citation

  • Blisard, William N. & Sun, Theresa & Blaylock, James R., 1991. "Effects of Advertising on the Demand for Cheese and Fluid Milk," Staff Reports 278603, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278603
    DOI: 10.22004/ag.econ.278603
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    References listed on IDEAS

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    1. Huang, Kuo S., 1985. "U.S Demand for Food: A Complete System of Price and Icome Effects," Technical Bulletins 206507, United States Department of Agriculture, Economic Research Service.
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    3. Wu, Jeremy S. & Kesecker, Kevin M. & Meinhold, Richard J., 1985. "Discussion On Analytical, Empirical, And Measurement Issues In Evaluating Advertising Program Effectiveness," Research on Effectiveness of Agricultural Commodity Promotion, April 9-10, 1985, Arlington, Virginia 279525, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    4. Stanley R. Thompson & Doyle A. Eiler, 1975. "Producer Returns from Increased Milk Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 505-508.
    5. 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.
    6. Verma, Vinod K, 1980. "A Price Theoretic Approach to the Specification and Estimation of the Sales-Advertising Function," The Journal of Business, University of Chicago Press, vol. 53(3), pages 115-137, July.
    7. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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    Cited by:

    1. 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," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    2. Suzuki, Nobuhiro & Kaiser, Harry M. & Lenz, John E. & Forker, Olan D., 1993. "Evaluating U.S. Generic Milk Advertising Effectiveness Using An Imperfect Competition Model," Research Bulletins 123015, Cornell University, Department of Applied Economics and Management.
    3. Werner, Chris & Foltz, John C. & Wu, Shunxiang, 1999. "Idaho'S Cheese Industry: The Competitive Situation," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), pages 1-10, July.

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