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Promotion Of Primary Products - A View From The Cloister

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  • Quilkey, John J.

Abstract

This paper is a discourse on how promotion may contribute to the efficiency of consumption. The view is taken that, through its addition to the quantity of search with respect to product characteristics, promotion may enable consumers to allocate their expenditures more efficiently and yield additional revenue to producers of the promoted product. The central plea is for consistency in the identification of promotion objectives, the implementation of the promotion program and monitoring of the outcome. In an idiosyncratic way, the promotion objectives are framed as being related to price and income elasticities and it is argued that promotional outcomes should be monitored in terms of these elasticities. Supply shifts may complement promotion strategies to the advantage or disadvantage of producers and the outcomes in terms of producer surplus are examined for particular promotion strategies and shifts in linear supply functions.

Suggested Citation

  • Quilkey, John J., 1986. "Promotion Of Primary Products - A View From The Cloister," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(01), pages 1-15, April.
    • Handle: RePEc:ags:ajaeau:22878
    DOI: 10.22004/ag.econ.22878
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    References listed on IDEAS

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    1. Ross M. Parish, 1963. "Possibilities For Promoting Farm Products," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 7(1), pages 27-34, June.
    2. Marc Nerlove & Frederick V. Waugh, 1961. "Advertising without Supply Control: Some Implications of a Study of the Advertising of Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 813-837.
    3. Bloch, Harry, 1980. "The Effect of Advertising on Competition: Comments on A Survey," Journal of Economic Literature, American Economic Association, vol. 18(3), pages 1063-1066, September.
    4. Nicholas Kaldor, 1950. "The Economic Aspects of Advertising," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 18(1), pages 1-27.
    5. Parish, Ross M., 1963. "Possibilities For Promoting Farm Products," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 7(01), pages 1-8, June.
    6. Naughtin, John C. & Quilkey, John J., 1979. "Pricing Efficiency In The Retail Meat Market," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(01), pages 1-14, April.
    7. Freebairn, John W., 1967. "Grading as a Market Innovation," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(03), pages 1-16, September.
    8. John C. Naughtin & John J. Quilkey, 1979. "Pricing Efficiency In The Retail Meat Market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 48-61, April.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    10. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69(3), pages 213-213.
    11. Simon, Julian L, 1980. "On Firm Size and Advertising Efficiency: A Comment," Journal of Economic Literature, American Economic Association, vol. 18(3), pages 1066-1075, September.
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    Cited by:

    1. Kinnucan, Henry W., 2003. "Optimal generic advertising in an imperfectly competitive food industry with variable proportions," Agricultural Economics, Blackwell, vol. 29(2), pages 143-158, October.
    2. Henry W. Kinnucan & Yuqing Zheng, 2004. "Advertising's effect on the market demand elasticity: A note," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 181-188.
    3. Henry W. Kinnucan & John P. Nichols, 1999. "Symposium on commodity promotion research: Introductory remarks," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 463-464.
    4. Farrell, Terence C. & Tozer, Peter R., 1996. "Strategic Alliances and Marketing Cooperatives: a Lamb Industry Case Study," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(02), pages 1-10, August.
    5. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1996. "Profitability Of Incremental Expenditure On Fibre Promotion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-24, December.
    6. Richardson, Bob, 1986. "Some Current Issues In The Marketing Of Agricultural Products," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(2-3), pages 1-14, August.
    7. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    8. Gorny, Rachel A. & Ahmadi-Esfahani, Fredoun Z., 1993. "Structural Change in the Demand for Differentiated Meat Products in Sydney," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), pages 1-9, April.

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