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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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    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.
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    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. 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.
    7. 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.
    8. Sun, Theresa Y. & Blaylock, James R. & Blisard, Noel, 1993. "An Evaluation of Fluid Milk and Cheese Advertising," Technical Bulletins 313659, United States Department of Agriculture, Economic Research Service.
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    2. Laura Andersen & Sinne Smed, 2013. "What is it consumers really want, and how can their preferences be influenced? The case of fat in milk," Empirical Economics, Springer, vol. 45(1), pages 323-347, August.
    3. Zhang, Wei, 2021. "California's Climate Policy and the Dairy Manufacturing Industry: How Does a Federal Milk Marketing Order Matter?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(3), September.
    4. Yuqing Zheng & Harry M. Kaiser, 2009. "Evaluating the effectiveness of generic advertising versus nonadvertising marketing activities on New York State milk markets," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 351-368.
    5. Davis, Christopher G. & Dong, Diansheng & Blayney, Donald P. & Yen, Steven T. & Stillman, Richard, . "U.S. Fluid Milk Demand: A Disaggregated Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(01), pages 1-26.
    6. 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.
    7. Govindasamy, Ramu & Kumaraswamy, Anicham & Puduri, Venkata S. & Onyango, Benjamin M., 2006. "Demographic Characteristics of Consumers who Read Grocery Brochures Regularly and Those who are willing to Switch Supermarkets to Buy Advertised Specials: An Analysis," P Series 36718, Rutgers University, Department of Agricultural, Food and Resource Economics.
    8. Andersen, Laura M. & Smed, Sinne, 2010. "What Is It Consumers Really Want And Why? The Case Of Fat In Milk," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116455, European Association of Agricultural Economists.
    9. Kent D. Messer & Todd M. Schmit & Harry M. Kaiser, 2005. "Optimal Institutional Mechanisms for Funding Generic Advertising: An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1046-1060.
    10. Adachi, Kenji & Liu, Donald J., 2006. "Estimating Threshold Effects of Generic Fluid Milk and Cheese Advertising," Staff Papers 13754, University of Minnesota, Department of Applied Economics.
    11. Durham, Catherine A. & Johnson, Aaron J. & McFetridge, Marc V., 2007. "Marketing-Management Impacts on Produce Sales," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(2), pages 1-17, July.
    12. Davis, Christopher G. & Blayney, Donald & Dong, Diansheng & Yen, Steven T. & Johnson, Rachel J., 2011. "Will Changing Demographics Affect U.S. Cheese Demand?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 259-273, May.
    13. Metin Cakir & Joseph V. Balagtas, 2010. "Econometric evidence of cross-market effects of generic dairy advertising," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 83-99.
    14. Diansheng Dong & Todd M. Schmit & Harry Kaiser, 2012. "Modelling household purchasing behaviour to analyse beneficial marketing strategies," Applied Economics, Taylor & Francis Journals, vol. 44(6), pages 717-725, February.
    15. Karim, Md Aktar Ul & Aithal, Vikram & Bhowmick, Amiya Ranjan, 2023. "Random variation in model parameters: A comprehensive review of stochastic logistic growth equation," Ecological Modelling, Elsevier, vol. 484(C).
    16. Schmit, Todd M. & Kaiser, Harry M., 2007. "Optimal Seasonal Allocation of Generic Dairy Advertising Expenditures," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 187-199, April.
    17. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U. S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 147-159, October.
    18. Rickard, Bradley J. & Liaukonyte, Jura & Kaiser, Harry M. & Richards, Timothy J., 2010. "Examining consumer response to commodity-specific and broad-based promotion programs for fruits and vegetables using experimental economics," Working Papers 126965, Cornell University, Department of Applied Economics and Management.
    19. Nicholson, Charles F. & Kaiser, Harry M., 2008. "Dynamic market impacts of generic dairy advertising," Journal of Business Research, Elsevier, vol. 61(11), pages 1125-1135, November.
    20. Kaiser, Harry M. & Wang, Yu & Schmit, Todd M., 2004. "Impact of Generic Milk Advertising on New York State Markets, 1986-2003," Research Bulletins 122105, Cornell University, Department of Applied Economics and Management.

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