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Decomposing the Variation in Generic Advertising Response over Time

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  • Todd M. Schmit
  • Harry M. Kaiser

Abstract

A time-varying parameter model of fluid milk and cheese demand reveals that changes in age composition, race composition, and food spending patterns away from home were most important to changes in generic advertising response over time. Advertising response elasticities indicate that generic advertising could be enhanced by targeting young children households for fluid milk, and Asian/Hispanic households for cheese. Results also indicate that shifting targeted advertising efforts to the away-from-home market may increase generic cheese advertising response. Copyright 2004, Oxford University Press.

Suggested Citation

  • Todd M. Schmit & Harry M. Kaiser, 2004. "Decomposing the Variation in Generic Advertising Response over Time," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 139-153.
  • Handle: RePEc:oup:ajagec:v:86:y:2004:i:1:p:139-153
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    File URL: http://hdl.handle.net/10.1111/j.0092-5853.2004.00568.x
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    Cited by:

    1. Laura Andersen & Sinne Smed, 2013. "What is it consumers really want, and how can their preferences be influenced? The case of fat in milk," Empirical Economics, Springer, vol. 45(1), pages 323-347, August.
    2. Davis, Christopher G. & Blayney, Donald P. & Dong, Diansheng & Yen, Steven T. & Johnson, Rachel J., 2011. "Will Changing Demographics Affect U.S. Cheese Demand?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 2), pages 1-15, May.
    3. Yuqing Zheng & Harry M. Kaiser, 2009. "Evaluating the effectiveness of generic advertising versus nonadvertising marketing activities on New York State milk markets," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 351-368.
    4. Davis, Christopher G. & Dong, Diansheng & Blayney, Donald P. & Yen, Steven T. & Stillman, Richard, 2012. "U.S. Fluid Milk Demand: A Disaggregated Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 0(Issue 1), pages 1-26, February.
    5. Kent D. Messer & Todd M. Schmit & Harry M. Kaiser, 2005. "Optimal Institutional Mechanisms for Funding Generic Advertising: An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1046-1060.
    6. 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.
    7. Govindasamy, Ramu & Kumaraswamy, Anicham & Puduri, Venkata S. & Onyango, Benjamin M., 2006. "Demographic Characteristics of Consumers who Read Grocery Brochures Regularly and Those who are willing to Switch Supermarkets to Buy Advertised Specials: An Analysis," P Series 36718, Rutgers University, Department of Agricultural, Food and Resource Economics.
    8. Adachi, Kenji & Liu, Donald J., 2006. "Estimating Threshold Effects of Generic Fluid Milk and Cheese Advertising," 2006 Annual meeting, July 23-26, Long Beach, CA 21333, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Andersen, Laura M. & Smed, Sinne, 2010. "What Is It Consumers Really Want And Why? The Case Of Fat In Milk," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116455, European Association of Agricultural Economists.
    10. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U.S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-13.
    11. Durham, Catherine A. & Johnson, Aaron J. & McFetridge, Marc V., 2007. "Marketing-Management Impacts on Produce Sales," Journal of Food Distribution Research, Food Distribution Research Society, vol. 0(Number 2), pages 1-17, July.
    12. Schmit, Todd M. & Kaiser, Harry M., 2007. "Optimal Seasonal Allocation of Generic Dairy Advertising Expenditures," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 1), pages 1-23, April.
    13. Metin Cakir & Joseph V. Balagtas, 2010. "Econometric evidence of cross-market effects of generic dairy advertising," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 83-99.
    14. Diansheng Dong & Todd M. Schmit & Harry Kaiser, 2012. "Modelling household purchasing behaviour to analyse beneficial marketing strategies," Applied Economics, Taylor & Francis Journals, vol. 44(6), pages 717-725, February.
    15. Rickard, Bradley J. & Liaukonyte, Jura & Kaiser, Harry M. & Richards, Timothy J., 2010. "Examining consumer response to commodity-specific and broad-based promotion programs for fruits and vegetables using experimental economics," Working Papers 126965, Cornell University, Department of Applied Economics and Management.
    16. Nicholson, Charles F. & Kaiser, Harry M., 2008. "Dynamic market impacts of generic dairy advertising," Journal of Business Research, Elsevier, vol. 61(11), pages 1125-1135, November.
    17. Kaiser, Harry M. & Wang, Yu & Schmit, Todd M., 2004. "Impact of Generic Milk Advertising on New York State Markets, 1986-2003," Research Bulletins 122105, Cornell University, Department of Applied Economics and Management.

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