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Determinants of temporal variations in generic advertising effectiveness

Author

Listed:
  • Chanjin Chung

    (Department of Agricultural, Resource, and Managerial Economics, 313 Warren Hall, Cornell University, Ithaca, NY 14853-7801)

  • Harry M. Kaiser

    (Department of Agricultural, Resource, and Managerial Economics, 313 Warren Hall, Cornell University, Ithaca, NY 14853-7801)

Abstract

This study develops a varying-parameter advertising model specifying advertising parameters as a function of advertising strategies and market environments to explain the varying nature of the advertising responses. This model allows researchers to examine the sources of change in advertising effectiveness over time. The model is applied to the New York City fluid milk market for the period from January, 1986 through June, 1995. Results indicate that advertising strategies and market environments play important roles in determining advertising effectiveness. Particularly, demographic factors were more important than economic factors. The results also suggest that when the market conditions are unfavorable due to increase in price, percentage of African Americans, and percentage of food expenditures for eating away from home, advertising becomes more important and effective. [JEL Classification Codes: Q130, M300, and M370] © 2000 John Wiley & Sons, Inc.

Suggested Citation

  • Chanjin Chung & Harry M. Kaiser, 2000. "Determinants of temporal variations in generic advertising effectiveness," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 197-214.
  • Handle: RePEc:wly:agribz:v:16:y:2000:i:2:p:197-214
    DOI: 10.1002/(SICI)1520-6297(200021)16:2<197::AID-AGR5>3.0.CO;2-K
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    References listed on IDEAS

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    1. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," Review of Economic Studies, Oxford University Press, vol. 57(1), pages 99-125.
    2. Reberte, J. Carlos & Kaiser, Harry M. & Lenz, John E. & Forker, Olan D., 1996. "Generic Advertising Wearout: The Case Of The New York City Fluid Milk Campaign," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(02), December.
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    4. Blaylock, James R. & Smallwood, David M., 1983. "Effects of Household Socioeconomic Features on Dairy Purchases," Technical Bulletins 157654, United States Department of Agriculture, Economic Research Service.
    5. Kinnucan, Henry W., 1986. "Demographic Versus Media Advertising Effects On Milk Demand: The Case Of The New York City Market," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(1), April.
    6. Frank M. Bass & Robert P. Leone, 1983. "Temporal Aggregation, the Data Interval Bias, and Empirical Estimation of Bimonthly Relations from Annual Data," Management Science, INFORMS, vol. 29(1), pages 1-11, January.
    7. H. E. Doran & J. J. Quilkey, 1972. "Harmonic Analysis of Seasonal Data: Some Important Properties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(4_Part_1), pages 646-651.
    8. Henry W. Kinnucan & Meenakshi Venkateswaran, 1994. "Generic Advertising; and the Structural Heterogeneity Hypothesis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(3), pages 381-396, November.
    9. Philip R. Vande Kamp & Harry M. Kaiser, 1999. "Irreversibility in Advertising-Demand Response Functions: An Application to Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 385-396.
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    Cited by:

    1. Schmit, Todd M. & Kaiser, Harry M., 2002. "Measuring the Impacts of Generic Fluid Milk and Cheese Advertising: A Time-Varying Parameter Application," Research Bulletins 122635, Cornell University, Department of Applied Economics and Management.
    2. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. van Voorthuizen, Hilde & Schotzko, R. Thomas & Mittelhammer, Ronald C., 2002. "Measuring The Effects Of Generic Price And Non-Price Promotional Activities: The Case Of Washington Apples," 2002 Annual meeting, July 28-31, Long Beach, CA 19637, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Dong, Diansheng & Schmit, Todd M. & Kaiser, Harry M., 2007. "Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(02), pages 253-266, October.
    5. 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.
    6. 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).
    7. van Voorthuizen, Hilde & Schotzko, R. Thomas & Mittelhammer, Ronald C., 2003. "Measuring The Impact Of Advertising And Promotion: Single-Or Multi-Equation Systems? A Case Study Of The Washington Apple Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(01), March.

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