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Optimal Choice Of Generic Milk Advertising Expenditures By Media Outlet

  • Pritchett, James G.
  • Liu, Donald J.
  • Kaiser, Harry M.

The largest portion of dairy and milk checkoff funds is spent on generic fluid milk advertising. These funds are distributed among four distinct media outlets-television, radio, print, and outdoor. Spending too little on one media outlet or too much on another constitutes a missed opportunity to garner higher returns. Using 1984-93 data, this study compares historical advertising expenditures in each media outlet to the advertising expenditure decision of an optimal control model. Results show profits would have increased if funds had been reallocated from television to radio, print, and outdoor media outlets.

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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 23 (1998)
Issue (Month): 01 (July)

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Handle: RePEc:ags:jlaare:31179
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  1. Henry W. Kinnucan & Maria Thomas, 1997. "Optimal Media Allocation Decisions For Generic Advertisers," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 425-441.
  2. Kinnucan, Henry W., 1982. "Demographic Versus Media Advertising Effects on Milk Demand: The Case of the New York City Market," Staff Papers 183856, Cornell University, Department of Applied Economics and Management.
  3. E. W. Goddard & M. L. McCutcheon, 1993. "Optimal Producer Investment in Generic Advertising: The Case of Fluid Milk in Ontario and Quebec," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(3), pages 329-347, November.
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