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A double-hurdle approach to advertising: The case of cheese

Author

Listed:
  • Noel Blisard

    (Economists with the Economic Research Service)

  • James R. Blaylock

    (Economists with the Economic Research Service)

Abstract

This article uses a double-hurdle model to examine the demand for cheese. Essentially, this approach argues that the effects of advertising and other factors on product demand should be judged in terms of their influence on two separate decisions: a decision to participate in the market for cheese and the decision concerning how much to purchase. We find that generic advertising for natural cheese has been successful in inducing people into the cheese market but that it does not influence those already buying cheese to increase their purchases.

Suggested Citation

  • Noel Blisard & James R. Blaylock, 1992. "A double-hurdle approach to advertising: The case of cheese," Agribusiness, John Wiley & Sons, Ltd., vol. 8(2), pages 109-120.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:2:p:109-120
    DOI: 10.1002/1520-6297(199203)8:2<109::AID-AGR2720080203>3.0.CO;2-2
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    References listed on IDEAS

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    1. Ward, Ronald W. & Myers, Lester H., 1979. "Advertising Effectiveness and Coefficient Variation Over Time," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 31(1), pages 1-11, January.
    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. Stanley R. Thompson & Doyle A. Eiler, 1975. "Producer Returns from Increased Milk Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 505-508.
    4. Ronald W. Ward & Julio Chang & Stan Thompson, 1985. "Commodity advertising: Theoretical issues relating to generic and brand promotions," Agribusiness, John Wiley & Sons, Ltd., vol. 1(4), pages 269-276.
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    Citations

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    Cited by:

    1. Kaiser, Harry M., 1997. "Impact of National Generic Dairy Advertising on Dairy Markets, 1984-96," Research Bulletins 122805, Cornell University, Department of Applied Economics and Management.
    2. Leigh J. Maynard & James S. Shortle, 2001. "Determinants of Cleaner Technology Investments in the U.S. Bleached Kraft Pulp Industry," Land Economics, University of Wisconsin Press, vol. 77(4), pages 561-576.
    3. Kaiser, Harry M., 1997. "Impact Of National Generic Dairy Advertising On Dairy Markets, 1984-95," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(2), pages 1-11, December.
    4. Schmit, Todd M. & Dong, Diansheng & Chung, Chanjin & Kaiser, Harry M. & Gould, Brian W., 2002. "Identifying The Effects Of Generic Advertising On The Household Demand For Fluid Milk And Cheese: A Two-Step Panel Data Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-22, July.
    5. Goddard, Ellen W. & Shank, Benjamin & Panter, Chris & Nilsson, Tomas K.H. & Cash, Sean B., 2007. "Canadian Chicken Industry: Consumer Preferences, Industry Structure and Producer Benefits from Investment in Research and Advertising," Project Report Series 52088, University of Alberta, Department of Resource Economics and Environmental Sociology.
    6. Kaiser, Harry M., 1998. "Impact of National Generic Dairy Advertising on Dairy Markets, 1984-97," Research Bulletins 122690, Cornell University, Department of Applied Economics and Management.

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