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Determinants of temporal variations in generic advertising effectiveness

  • 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)

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.

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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 16 (2000)
Issue (Month): 2 ()
Pages: 197-214

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Handle: RePEc:wly:agribz:v:16:y:2000:i:2:p:197-214
Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. 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.
  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.
  3. 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.
  4. 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.
  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. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
  8. Phillips, Peter C B & Hansen, Bruce E, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," Review of Economic Studies, Wiley Blackwell, vol. 57(1), pages 99-125, January.
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