IDEAS home Printed from https://ideas.repec.org/p/zwi/ipaper/18.html
   My bibliography  Save this paper

An Estimation of Consumer Benefits From the Public Campaign To Lower Cereal Prices

Author

Listed:
  • Ronald W. Cotterill

    () (University of Connecticut)

  • Andrew W. Franklin

Abstract

Using monthly IRI scanner data for January 1993 to March 1998, cereal prices declined even after adjusting for trade promotions and reduced manufacturer coupons during the public campaign in 1995 and early 1996, as well as after the industry's announced shelf price reductions in Spring 1996. The gap between branded and private label prices also declined. This was due to unexpected increases in private label prices during the jawboning campaign as well as decreases in branded prices. As predicted by the Dorfman Steiner theorem, branded advertising declined when the price cuts reduced brands price cost margins. Quaker’s lower priced bagged copies of other firms’ leading brands have grown rapidly and advanced Quaker’s market share to over 10 percent, as Kellogg’s share continues to decline and General Mills’ share is stable. Consumer benefits due to lower prices for the 35-month period commencing April 2, 1995 are 2.633 billion dollars.

Suggested Citation

  • Ronald W. Cotterill & Andrew W. Franklin, 1998. "An Estimation of Consumer Benefits From the Public Campaign To Lower Cereal Prices," Issue Papers 18, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  • Handle: RePEc:zwi:ipaper:18
    as

    Download full text from publisher

    File URL: http://www.zwickcenter.uconn.edu/documents/issuepapers/ip18.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ronald W. Cotterill & Andrew W. Franklin & Lawrence E. Haller, 1994. "Harvesting and Tacit Collusion in the Breakfast Cereal Industry: A Case Study of Nabisco Shredded Wheat and Post Grape Nuts," Issue Papers 06, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    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. Cotterill, Ronald W & Putsis, William P, Jr & Dhar, Ravi, 2000. "Assessing the Competitive Interaction between Private Labels and National Brands," The Journal of Business, University of Chicago Press, vol. 73(1), pages 109-137, January.
    2. repec:zwi:journl:v:41:y:2012:i:1:p:1-11 is not listed on IDEAS
    3. Ronald W. Cotterill, 2007. "Market Definition and Market Power in the British Supermarket Industry," Food Marketing Policy Center Research Reports 098, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Michel, Christian, 2013. "Identification and Estimation of Intra-Firm and Industry Competition via Ownership Change," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80488, Verein für Socialpolitik / German Economic Association.
    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. Cotterill, Ronald W., 2012. "The Evolution of Quantitative Food Marketing Policy: A Public Perspective," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-11, April.
    7. Christian, Michel, 2013. "Identification and Estimation of Intra-Firm and Industry Competition via Ownership Change," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 409, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

    More about this item

    Keywords

    jawboning; net of trade promotion prices; price trend lines; branded cereal; private label cereal; advertising; manufacturer coupons.;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    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:zwi:ipaper:18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/dauctus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.