IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22155.html
   My bibliography  Save this paper

The Effects Of Advertising On Milk Demand Elasticities And Structural Changes In Korean Milk Markets

Author

Listed:
  • Kim, Kwansoo
  • Roh, Jae-Sun

Abstract

This paper examines the effectiveness of generic commodity promotion program based on checkoff funds by estimating the demand elasticities of advertisement. Focusing on a possible structural change in terms of advertisement strategies, we model econometrically the effects of generic advertising on milk demand in Korean milk. Econometric results show significant differences in the effects of advertising on milk demand depending on whether the market is mainly characterized by either brand or generic advertisement (the generic advertising regime versus the brand advertising regime). The demand elasticity of advertisement is estimated to be smaller in the brand advertising regime than the generic advertising regime. This suggests a positive impact of generic commodity promotion program in Korean milk market. In addition, we found evidence that milk imports play an important role in characterizing two different regimes: a structural shift occurs when the imported amount of milk is significant.

Suggested Citation

  • Kim, Kwansoo & Roh, Jae-Sun, 2003. "The Effects Of Advertising On Milk Demand Elasticities And Structural Changes In Korean Milk Markets," 2003 Annual meeting, July 27-30, Montreal, Canada 22155, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22155
    DOI: 10.22004/ag.econ.22155
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22155/files/sp03ki02.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.22155?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kaiser, Harry M., 2000. "Impact Of Generic Fluid Milk And Cheese Advertising On Dairy Markets 1984-99," Working Papers 292855, Cornell University, Department of Applied Economics and Management.
    2. Kaiser, Harry M., 2000. "Impact of Generic Fluid Milk and Cheese Advertising on Dairy Markets," Research Bulletins 122670, Cornell University, Department of Applied Economics and Management.
    3. Schmit, Todd M. & Kaiser, Harry M., 2002. "Modeling The Effects Of Generic Advertising On The Demand For Fluid Milk And Cheese: A Time-Varying Parameter Application," 2002 Annual meeting, July 28-31, Long Beach, CA 19754, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. 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.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    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. Todd M. Schmit & Brian W. Gould & Diansheng Dong & Harry M. Kaiser & Chanjin Chung, 2003. "The Impact of Generic Advertising on U.S. Household Cheese Purchases: A Censored Autocorrelated Regression Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 15-37, March.
    2. Schmit, Todd M. & Kaiser, Harry M., 2002. "Modeling The Effects Of Generic Advertising On The Demand For Fluid Milk And Cheese: A Time-Varying Parameter Application," 2002 Annual meeting, July 28-31, Long Beach, CA 19754, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Harry M. Kaiser & Todd M. Schmit, 2003. "Distributional effects of generic dairy advertising throughout the marketing channel," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 289-300.
    4. Capps, Oral, Jr. & Williams, Gary W. & Dang, Trang, 2010. "Effects of Lamb Promotion on Lamb Demand and Imports," Reports 90492, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    5. 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.
    6. 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.
    7. O. Kilic & C. Akbay & G. Yildiz Tiryaki, 2009. "Factors affecting packed and unpacked fluid milk consumption," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 55(11), pages 557-563.
    8. Schmit, Todd M. & Kaiser, Harry M., 2002. "Measuring the Impacts of Generic Fluid Milk and Cheese Advertising: A Time-Varying Parameter Application," Research Bulletins 122635, Cornell University, Department of Applied Economics and Management.
    9. Cuma Akbay & Gulgun Yildiz Tiryaki, 2008. "Unpacked and packed fluid milk consumption patterns and preferences in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 9-20, January.
    10. Fritz, Richard & Cornelius, James & Green, John R., 1994. "An Assessment Of Product Marketing Strategies Utilized By The Oregon Potato Commission," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279594, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    11. Rieger, Jörg & Kuhlgatz, Christian & Anders, Sven, 2016. "Food scandals, media attention and habit persistence among desensitised meat consumers," Food Policy, Elsevier, vol. 64(C), pages 82-92.
    12. Chern, Wen S. & Zuo, Jun, 2006. "Impacts of Fat and Cholesterol Information On Consumer Demand: Application of New Indexes," Working Papers 28321, Ohio State University, Department of Agricultural, Environmental and Development Economics.
    13. Gould, Brian W., 1996. "Consumer Promotion And Purchase Timing: The Case Of Cheese," Staff Papers 12664, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    14. Sun, Theresa Y. & Blisard, Noel & Blaylock, James R., 1995. "An Evaluation of Fluid Milk and Cheese Advertising, 1978-93," Technical Bulletins 156767, United States Department of Agriculture, Economic Research Service.
    15. Balagtas, Joseph Valdes & Kim, Sounghun, 2005. "Beggar-Thy-Self Advertising: A Multi-Market Model of Generic Promotion for Dairy Products," 2005 Annual meeting, July 24-27, Providence, RI 19303, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Lisa A. House & Yuan Jiang & Matthew Salois, 2015. "Measures of Online Advertising Effectiveness for Market Penetration: The Case of Orange Juice Consumers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 435-448, December.
    17. Stewart, Hayden & Dong, Diansheng, 2023. "U.S. Household Purchases of Dairy Milk and Plant-Based Milk Alternatives," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(1), January.
    18. Xuqi Chen & Yan Heng & Zhifeng Gao & Yuan Jiang, 2022. "Impacts of duo‐regional generic advertising of social media on consumer preference," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 21-44, January.
    19. Brian Gould, 1997. "Consumer promotion and purchase timing: the case of cheese," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 445-457.
    20. Bakhtavoryan, Rafael & Capps, Jr., Oral, 2024. "A Demand Systems Analysis for Cheese Varieties Using a Balanced Panel of US-Designated Market Areas, 2018–2020," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Preprint), January.

    More about this item

    Keywords

    Marketing;

    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:ags:aaea03:22155. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.