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Measurement of advertising effectiveness using alternative measures of advertising exposure

Author

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  • Chanjin Chung

    (Department of Agricultural, Resource, and Managerial Economics, Cornell University, Warren Hall, Ithaca, NY 14853-7801)

  • Harry M. Kaiser

    (Department of Agricultural, Resource, and Managerial Economics, Cornell University, Warren Hall, Ithaca, NY 14853-7801)

Abstract

The objective of this study is to examine the impacts of alternative measures of advertising exposure on the evaluation of advertising effectiveness. This study used quarterly data of post-buy actual GRPs and corresponding advertising expenditures for the New York City fluid milk market. First, the correlation was tested between GRP and expenditure series. Then, advertising effectiveness was evaluated using these two series. Correlation tests suggested no correlation between GRP and expenditure variables was highly unlikely. The econometric analysis, however, found that the two alternatives produced quite different advertising elasticities and rates of return. The results indicate that the choice of advertising exposure measure may provide researchers with different evaluation results. [Econ-Lit citations: Q130, M300, M370] © 1999 John Wiley & Sons, Inc.

Suggested Citation

  • Chanjin Chung & Harry M. Kaiser, 1999. "Measurement of advertising effectiveness using alternative measures of advertising exposure," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 525-537.
    • Handle: RePEc:wly:agribz:v:15:y:1999:i:4:p:525-537
    DOI: 10.1002/(SICI)1520-6297(199923)15:4<525::AID-AGR8>3.0.CO;2-2
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    References listed on IDEAS

    as
    1. Hui-Shung Chang & Henry W. Kinnucan, 1992. "Measuring exposure to advertising: A look at gross rating points," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 413-423.
    2. John Lenz & Harry M. Kaiser & Chanjin Chung, 1998. "Economic analysis of generic milk advertising impacts on markets in New York State," Agribusiness, John Wiley & Sons, Ltd., vol. 14(1), pages 73-83.
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    Cited by:

    1. Roucan-Kane, Maud & Peake, Whitney O., 2007. "Milking The Most From Your Promotional Dollars: An Analysis Of Agribusiness Firms Serving U.S.Agricultural Producers," Working papers 7331, Purdue University, Department of Agricultural Economics.
    2. John M. Crespi, 2003. "The Generic Advertising Controversy: How Did We Get Here and Where Are We Going?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 294-315.

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