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Generic Advertising (generic + advertising)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2003
J. A. L. Cranfield
Optimal investment rules are developed for a producer agency investing in domestic-market generic advertising, export market promotion, and cost-of-production-reducing research. These rules are derived assuming either maximization of producers' surplus or social surplus. The form of the optimality rules differs according to which objective is pursued. Fixed producer agency budgets are also allowed by incorporating a constraint limiting total expenditure on the three activities. Addition of such a constraint substantially alters the structure of the optimal investment rules. Differences in these rules highlight the importance of accounting for the financing mechanism when modeling optimal checkoff fund investment decisions. Optimality rules are simulated using data for the Canadian beef sector. Results suggest historic underinvestment in domestic-market generic advertising but overinvestment in export market promotion. Sensitivity of simulation results underscores the difficulty in assessing optimality of historic producer investment in cost-of-production-reducing research. L'auteur propose des règles pour calculer l'investissement optimal dans la publicité générique sur le marché intérieur, la promotion des exportations et la recherche sur la réduction des coûts de production. Il a dérivé ces règles en supposant une maximisation des excédents pour les producteurs ou pour la société. La forme des règles varie en fonction de l'objectif recherché. Les règles permettent aussi l'établissement d'un budget fixe pour les organismes des producteurs, par intégration d'une limite aux sommes totales engagées dans les trois activités. L'addition d'une telle contrainte modifie sensiblement la structure des règles. Les variations queprésentent ces dernières montrent qu'ilfaut tenir compte des modes de financement quand on modélise les décisions sur l'investissement optimal desfonds issus des prélèvements à la production. L'auteur a vérifié les règles d'optimalisation avec des données venant des producteurs de b,uf canadiens. Les résultats indiquent qu'on a sous-investi dans la publicité générique sur le marché intérieur et surinvesti dans la promotion des exportations. La sensibilité des résultats de la simulation souligne combien il est difficile d'évaluer l'optimalisation des investissements historiques des producteurs dans la recherche sur la réduction des coûts de production. [source]

The Impact of Generic Advertising on U.S. Household Cheese Purchases: A Censored Autocorrelated Regression Approach

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2003
Todd M. Schmit
The impacts of generic cheese advertising on U.S. household cheese purchases are examined via the use of a unique household panel. Modest gains in overall at-home cheese purchases from generic cheese advertising appear to be largely the result of strong gains in purchases of natural cheese rather than processed cheese. Results indicate that relatively larger gains in household cheese purchases from generic advertising may be realized by targeting infrequent purchasers to increase purchase frequencies, rather than by targeting households in general to increase their conditional purchase levels. Les impacts de publicité de fromage générique sur les achats de fromage par les ménages américains sont examinés via l'usage d'un panneau unique fixé sur les ménages. Les accroissements modérés dans les achats du fromage à la maison à cause des avertissements génériques du fromage apparaissent d'être principalement le résultat des gains forts dans les achats de fromage de type nature plutôt que ceux de fromage traité. Les résultats indiquent que les plus grands gains dans les achats de fromage à la maison grâce à la publicité générique peuvent être rendus compte en visant sur les acheteurs rares pour augmenter leurs fréquences d'achat, plutôt que sur les ménages en général pour augmenter leurs niveaux d'achats conditionnels. [source]

Optimal Generic Advertising with a Rationed Related Good: The Case of Canadian Beef and Chicken Markets

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 2 2002
J. A. L. Cranfield
An optimal advertising rule is derived for a good sold in an open market (beef) when a related substitute good (chicken) is production rationed and whose imports are subject to trade restrictions. Such a rule is developed using a multi-market equilibrium displacement model that reflects demand interrelatedness, open trade of the advertised good (beef), with rationed production and restricted trade of the related good (chicken). The optimal rule nests earlier optimal advertising rules under a variety of conditions. Results underscore the importance of accounting for cross-product advertising effects. When these effects are present (absent), the optimal generic beef advertising intensity in Canada is shown to fall (rise) with elimination of supply management in Canada's chicken sector. L'auteur dérive une règie sur l'optimisation de la publicité pour un produit vendu sur un marché libre (b,uf) en présence d'un produit de substitution rationné dont on restreint les importations. Pour parvenir à une telle règie, l'auteur a utilisé un modèle de déplacement du point d'équilibre sur un marché multiple illustrant les liens entre la demande des produits concernés, le libre-échange du produit faisant l'objet de la publicité (b,uf) et la restriction de la production et des importations du produit apparenté (poulet). La règie d'optimisation englobe les règles antérieures sur l'optimisation de la publicité dans diverses situations. Les résultats soulignent qu'il est important de prendre en compte les retombées de la publicité sur les autres produits. Au Canada, en présence (absence) de telles retombées, le degré optimal de publicité générique sur le b,uf diminue (augmente) avec l'abolition de la gestion de l'offre de poulet. [source]

Econometric evidence of cross-market effects of generic dairy advertising

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2010
Metin Cakir
We estimate a dairy demand system to evaluate generic dairy advertising in the US, 1990,2005. Previous empirical studies of generic dairy advertising focus only on the market of the advertised good, ignoring potential spill-over and feedback effects. We specify an LA/AIDS model of dairy demand, which allows consistent estimation of cross-price and cross-advertising effects across dairy product markets, and is flexible and satisfies the axioms of consumer theory. We use the non-linear 3SLS estimator to address endogenous prices and serial correlation, and conduct bootstrapping to generate empirical distributions of elasticity estimates. Results suggest that cross-market effects are economically and statistically important. Thus, econometric dairy demand models that ignore cross-advertising and cross-price effects are mis-specified. Previous work that ignores substitution between fluid milk and cheese overstates producers' returns to generic advertising for either product. © 2010 Wiley Periodicals, Inc. [source]

Evaluating the effectiveness of generic advertising versus nonadvertising marketing activities on New York State milk markets

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 3 2009
Yuqing Zheng
This study distinguishes nonadvertising marketing activities from generic advertising and investigates their separate impacts on the retail demand for fluid milk in New York State. Advertising, having an estimated elasticity (of demand) of 0.038 using panel data, is found to be about five times as effective as nonadvertising; therefore, it remains the more powerful marketing tool. Such results have policy implications in benefit-cost analysis and optimal allocation of fluid-milk check-off funds. Our results suggest that NYS dairy producers have much to gain from investing more of their check-off budgets in advertising. [EconLit citations: Q11, M37]. © 2009 Wiley Periodicals, Inc. [source]

Quantity versus quality effects of generic advertising: The case of Norwegian salmon

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2007
Øystein Myrland
In this article, a two-equation sample selection model is used to estimate a household demand function for salmon incorporating domestic generic advertising. The two-equation estimation procedure, based on purchase and unit value equations, allows us to handle heavily censored panel data for salmon purchases by Norwegian households and the quality effects simultaneously. Unit values of the aggregated salmon commodity calculated from the observed expenditures and quantities are hypothesized to represent the average quality of the purchased commodity. Advertising effects on both purchases and unit values are investigated. The model also allows us to separate the effects of conditional purchases and purchase probabilities. Results indicate that most (76%) of the advertising effect is through the change of nonpurchase occasions to purchase occasions, and that generic salmon advertising induces Norwegian households to spend more money on salmon. However, advertising causes households to select more expensive products rather than increasing their purchased quantities. [EconLit citations: D12, C24]. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 85,100, 2007. [source]

Free-rider effects of generic advertising: The case of salmon

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 3 2003
Henry W. Kinnucan
The free-rider effects of commodity promotion are a neglected issue in the empirical literature. This study addresses the lacuna by considering the salmon promotion program conducted by the Norwegian Seafood Export Council. Specifically, a model of the world salmon market is used to indicate returns to Norwegian producers from NSEC's marketing activities, but also returns to Norway's international competitors. Results suggest program intensification would have a positive effect on total (worldwide) producer surplus in the short run, but the gain's distribution is uneven. Specifically, Norway would receive 23% of the gain compared to 48% for United Kingdom producers. By way of comparison, Norway and UK world trade shares are 47 and 16%, respectively. The disproportionate gains to UK producers are due to a double free ride: from the export tax used to fund the advertising increase, and from the advertising itself. [EconLit citations: L660, Q130, Q170]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 315,324, 2003. [source]

Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2003
J. A. L. Cranfield
Optimal investment rules are developed for a producer agency investing in domestic-market generic advertising, export market promotion, and cost-of-production-reducing research. These rules are derived assuming either maximization of producers' surplus or social surplus. The form of the optimality rules differs according to which objective is pursued. Fixed producer agency budgets are also allowed by incorporating a constraint limiting total expenditure on the three activities. Addition of such a constraint substantially alters the structure of the optimal investment rules. Differences in these rules highlight the importance of accounting for the financing mechanism when modeling optimal checkoff fund investment decisions. Optimality rules are simulated using data for the Canadian beef sector. Results suggest historic underinvestment in domestic-market generic advertising but overinvestment in export market promotion. Sensitivity of simulation results underscores the difficulty in assessing optimality of historic producer investment in cost-of-production-reducing research. L'auteur propose des règles pour calculer l'investissement optimal dans la publicité générique sur le marché intérieur, la promotion des exportations et la recherche sur la réduction des coûts de production. Il a dérivé ces règles en supposant une maximisation des excédents pour les producteurs ou pour la société. La forme des règles varie en fonction de l'objectif recherché. Les règles permettent aussi l'établissement d'un budget fixe pour les organismes des producteurs, par intégration d'une limite aux sommes totales engagées dans les trois activités. L'addition d'une telle contrainte modifie sensiblement la structure des règles. Les variations queprésentent ces dernières montrent qu'ilfaut tenir compte des modes de financement quand on modélise les décisions sur l'investissement optimal desfonds issus des prélèvements à la production. L'auteur a vérifié les règles d'optimalisation avec des données venant des producteurs de b,uf canadiens. Les résultats indiquent qu'on a sous-investi dans la publicité générique sur le marché intérieur et surinvesti dans la promotion des exportations. La sensibilité des résultats de la simulation souligne combien il est difficile d'évaluer l'optimalisation des investissements historiques des producteurs dans la recherche sur la réduction des coûts de production. [source]

The Impact of Generic Advertising on U.S. Household Cheese Purchases: A Censored Autocorrelated Regression Approach

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2003
Todd M. Schmit
The impacts of generic cheese advertising on U.S. household cheese purchases are examined via the use of a unique household panel. Modest gains in overall at-home cheese purchases from generic cheese advertising appear to be largely the result of strong gains in purchases of natural cheese rather than processed cheese. Results indicate that relatively larger gains in household cheese purchases from generic advertising may be realized by targeting infrequent purchasers to increase purchase frequencies, rather than by targeting households in general to increase their conditional purchase levels. Les impacts de publicité de fromage générique sur les achats de fromage par les ménages américains sont examinés via l'usage d'un panneau unique fixé sur les ménages. Les accroissements modérés dans les achats du fromage à la maison à cause des avertissements génériques du fromage apparaissent d'être principalement le résultat des gains forts dans les achats de fromage de type nature plutôt que ceux de fromage traité. Les résultats indiquent que les plus grands gains dans les achats de fromage à la maison grâce à la publicité générique peuvent être rendus compte en visant sur les acheteurs rares pour augmenter leurs fréquences d'achat, plutôt que sur les ménages en général pour augmenter leurs niveaux d'achats conditionnels. [source]