IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v87y2005i3p673-688.html
   My bibliography  Save this article

The Significance and Insignificance of Demand Analysis in Evaluating Promotion Programs

Author

Listed:
  • George C. Davis

Abstract

The estimated effects of promotion on demand are often small and insignificant. Yet, the estimated effects of promotion on industry profit are often positive and large. This puzzle is explained by demonstrating that (in)significance of promotion in a demand equation does not imply, and is not implied by, (in)significance of promotion in an industry profit equation. A Monte Carlo example is provided. The econometric modeling implications are discussed. The short-run marginal effect of a dollar of generic beef promotion on slaughter cattle industry profit is estimated to be about $9.84 with a standard error of 3.77 for 1997. Copyright 2005, Oxford University Press.

Suggested Citation

  • George C. Davis, 2005. "The Significance and Insignificance of Demand Analysis in Evaluating Promotion Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 673-688.
  • Handle: RePEc:oup:ajagec:v:87:y:2005:i:3:p:673-688
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2005.00755.x
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leister, Amanda M. & Capps, Oral, Jr. & Rosson, C. Parr, III, 2010. "The Economic Effects of New-Product Beef Promotion in Guatemala," Journal of Food Distribution Research, Food Distribution Research Society, vol. 0(Number 2), pages 1-11, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:87:y:2005:i:3:p:673-688. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.