IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v6y1990i4p345-354.html
   My bibliography  Save this article

Generic advertising of butter in Canada: Optimal advertising levels and returns to producers

Author

Listed:
  • Hui-Shung Chang

    (Department of Agricultural Economics and Rural Sociology, Auburn University)

  • Henry Kinnucan

    (Department of Agricultural Economics and Rural Sociology, Auburn University)

Abstract

This article focuses on the economics of butter advertising undertaken by the Dairy Bureau of Canada (DBG). The objectives were to determine the profitability of the generic advertising program (from an industry perspective) and to determine the optimal level of spending. Results, based on alternative functional forms of the sales-advertising response relationship, indicate DBC butler advertising is profitable at current expenditure levels but returns are not being maximized. In particular, increasing direct media expenditures from the current level of $1 million per quarter (1981 dollars) to between $1.5 and $2.0 million would increase the profitability of the investment.

Suggested Citation

  • Hui-Shung Chang & Henry Kinnucan, 1990. "Generic advertising of butter in Canada: Optimal advertising levels and returns to producers," Agribusiness, John Wiley & Sons, Ltd., vol. 6(4), pages 345-354.
    • Handle: RePEc:wly:agribz:v:6:y:1990:i:4:p:345-354
    DOI: 10.1002/1520-6297(199007)6:4<345::AID-AGR2720060406>3.0.CO;2-I
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Edward L. McClelland & Leo Polopolus & Lester H. Myers, 1971. "Optimal Allocation of Generic Advertising Budgets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 565-572.
    2. Henry Kinnucan & Olan D. Forker, 1986. "Seasonality in the Consumer Response to Milk Advertising with Implications for Milk Promotion Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 562-571.
    3. Kinnucan, Henry W., 1983. "Media Advertising Effects on Milk Demand: The Case of the Buffalo, New York Market with an Empirical Comparison to Alternative Functional Forms of the Sales Response Equation," Research Bulletins 184097, Cornell University, Department of Applied Economics and Management.
    4. Ronald W. Ward, 1975. "Revisiting the Dorfman-Steiner Static Advertising Theorem: An Application to the Processed Grapefruit Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 500-504.
    5. Stanley R. Thompson & Doyle A. Eiler, 1977. "Determinants of Milk Advertising Effectiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(2), pages 330-335.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Sartorius von Bach, Helmke, 1992. "Economic Aspects Of Advertising In Agriculture: A Review," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(1), March.
    2. Chen, Kevin Z. & Weerahewa, Jeevika, 1998. "Regulation, Market Power, And Advertising Effectiveness," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), pages 1-9, October.
    3. Ronald B. Larson, 1992. "Marketing agricultural products with coupons," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 485-492.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sartorius von Bach, Helmke, 1992. "Economic Aspects Of Advertising In Agriculture: A Review," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(1), March.
    2. Goddard, E.W. & Tielu, A., 1987. "The OMMB'S Fluid Milk Advertising," Working Papers 244815, University of Guelph, Department of Food, Agricultural and Resource Economics.
    3. Henry W. Kinnucan & Cynda R. Clary, 1995. "Brand versus generic advertising: A conceptual framework with an application to cheese," Agribusiness, John Wiley & Sons, Ltd., vol. 11(4), pages 355-369.
    4. de Boer, A.J., 1977. "Rural Product Promotion: Economic Aspects Of Promotability, Organization And Public Assistance," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 45(04), pages 1-25, December.
    5. Lee, Jonq-Ying & Brown, Mark G., 1990. "Lag Structures in Commodity Advertising Research," 1990 Annual meeting, August 5-8, Vancouver, Canada 271019, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. 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), pages 1-9, April.
    7. Costa, Ecio de Farias & Epperson, James E. & Huang, Chung L. & McKissick, John C., 2002. "Impacts Of Advertising And Promotion On The Demand For Scanned Purchases Of Vidalia Onions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(1), pages 1-10, March.
    8. Meilke, Karl D. & Sarker, Rakhal & Le Roy, Danny G., 1996. "Analyzing The Potential For Increased Trade In Dairy Products: A Canadian Perspective," Proceedings of the 2nd Agricultural and Food Policy Systems Information Workshop, 1996: Understanding Canada\United States Dairy Disputes 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    9. Cox, Thomas L., 1989. "A Demand Systems Approach to the Analysis of Commodity Promotion Programs: The Case of Canadian Fats and Oils," Staff Papers 200478, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    10. Capps, Oral, Jr. & Schmitz, John D., 1991. "Effect Of Generic Advertising On The Demand For Fluid Milk: The Case Of The Texas Market Order," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-10, December.
    11. Kaiser, Harry M., 1995. "An Analysis of Generic Dairy Promotion in the United States," Research Bulletins 122997, Cornell University, Department of Applied Economics and Management.
    12. Kinnucan, Henry W. & Venkateswaran, Meenakshi, 1990. "Effects of Generic Advertising on Perceptions and Behavior: The Case of Catfish," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(2), pages 137-151, December.
    13. Kaiser, Harry M. & Chung, Chanjin, 1999. "Impact of Generic Milk Advertising on New York State Markets," Research Bulletins 122677, Cornell University, Department of Applied Economics and Management.
    14. 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. 39(1), pages 1-23, April.
    15. Venkateswaran, Meenakshi & Kinnucan, Henry W. & Chang, Hui-Shung, 1993. "Modeling Advertising Carryover in Fluid Milk: Comparison of Alternative Lag Specifications," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 10-19, April.
    16. Pritchett, James G. & Liu, Donald J. & Kaiser, Harry M., 1998. "Optimal Choice Of Generic Milk Advertising Expenditures By Media Outlet," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-15, July.
    17. Larson, Ronald B., 1997. "Food Consumption And Seasonality," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(2), pages 1-9, July.
    18. C. P. Rosson & M. D. Hammig & J. W. Jones, 1986. "Foreign market promotion programs: An analysis of promotion response for apples, poultry, and tobacco," Agribusiness, John Wiley & Sons, Ltd., vol. 2(1), pages 33-42.
    19. Sun, Theresa Y. & Blaylock, James R., 1993. "An Evaluation of Fluid Milk and Cheese Advertising," Technical Bulletins 157039, United States Department of Agriculture, Economic Research Service.
    20. Adhikari, Murali & Paudel, Laxmi & Houston, Jack E. & Paudel, Biswo Nath, 2003. "Measuring the Impacts of US Export Promotion Program for Wheat in Selected Importing Regions," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35161, Southern Agricultural Economics Association.

    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:wly:agribz:v:6:y:1990:i:4:p:345-354. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.