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Decomposing the Variation in Generic Advertising Response over Time

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  • Todd M. Schmit
  • Harry M. Kaiser

Abstract

A time‐varying parameter model of fluid milk and cheese demand reveals that changes in age composition, race composition, and food spending patterns away from home were most important to changes in generic advertising response over time. Advertising response elasticities indicate that generic advertising could be enhanced by targeting young children households for fluid milk, and Asian/Hispanic households for cheese. Results also indicate that shifting targeted advertising efforts to the away‐fromhome market may increase generic cheese advertising response.

Suggested Citation

  • Todd M. Schmit & Harry M. Kaiser, 2004. "Decomposing the Variation in Generic Advertising Response over Time," American Journal of Agricultural Economics, John Wiley & Sons, vol. 86(1), pages 139-153, February.
    • Handle: RePEc:wly:ajagec:v:86:y:2004:i:1:p:139-153
    DOI: 10.1111/j.1467-8276.2004.tb18462.x
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    References listed on IDEAS

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    1. 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(2), pages 1-11, December.
    2. Liu, Donald J. & Kaiser, Harry M. & Forker, Olan D. & Mount, Timothy D., 1990. "An Economic Analysis Of The U.S. Generic Dairy Advertising Program Using An Industry Model," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(01), pages 1-12, April.
    3. Capps, Oral & Schmitz, John D., 1991. "Effect of Generic Advertising on the Demand for Fluid Milk: The Case of the Texas Market Order," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(2), pages 131-140, December.
    4. William G. Tomek & Harry M. Kaiser, 1999. "On improving econometric analyses of generic advertising impacts," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 485-500.
    5. Harry M. Kaiser & Donald J. Liu, 1998. "The Effectiveness of Generic versus Brand Advertising: The Case of U.S. Dairy Promotion," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 69-79.
    6. 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.
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