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Effect of Generic Advertising on the Demand for Fluid Milk: The Case of the Texas Market Order

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  • Capps, Oral
  • Schmitz, John D.

Abstract

This analysis indicates that generic advertising expenditures, ceteris paribus, generated rightward shifts in demand for fluid milk in the Texas Market Order over the period January 1980 to September 1988. Generally, the results from this study are in agreement with previous research efforts which suggest that generic advertising can increase the demand for fluid milk. Importantly, in this analysis, the impacts of television and radio advertising have been effectively disentangled. Television advertising generates a response that wears off more quickly than radio advertising. Also, the long-run effect of radio advertising is about 1.75 times greater than the long-run effect of television advertising.

Suggested Citation

  • Capps, Oral & Schmitz, John D., 1991. "Effect of Generic Advertising on the Demand for Fluid Milk: The Case of the Texas Market Order," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(2), pages 131-140, December.
  • Handle: RePEc:cup:jagaec:v:23:y:1991:i:02:p:131-140_01
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    References listed on IDEAS

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    1. Knutson, Ronald & Schwart, Robert & Smith, Edward G., 1988. "Milk Self-Sufficiency Desirable Goal?," Staff Reports 257917, Texas A&M University, Agricultural and Food Policy Center.
    2. H.H. Jensen & T. Kesavan & S.R. Johnson, 1992. "Measuring the Impact of Health Awareness on Food Demand," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(2), pages 299-312.
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    1. Henry W. Kinnucan & Yuliang Miao, 1999. "Media-specific returns to generic advertising: The case of catfish," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 81-99.
    2. Capps, O., . "Targeted Advertising and Promotion Campaigns_A Case Study of the National Pork Board," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 38(1).
    3. Gvillo, Rejeana & Capps, Oral, Jr. & Dharmasena, Senarath, 2014. "Dynamics of Advertising and Demand for Fluid Milk in the United States: An Incomplete Demand Approach," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170265, Agricultural and Applied Economics Association.
    4. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2014. "Dynamics of Consumer Response to Food Contamination: The 2007 Peanut Butter Recall," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-16, July.

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