Promotion Research Program
Journal Articles
Journal Articles
The following is an annotated bibliography of selected journal articles that have been published and/or sponsored by CCPRP. Each citation has the name or names of the author, the title of the article, the journal in which it appeared, and a brief abstract.
Ding, Lily and Henry W. Kinnucan. "Market Allocation Rules for Nonprice Promotion with Farm Programs: U.S. Cotton." Journal of Agricultural and Resource Economics 21(2):351-367.
Rules are derived to indicate the optimal allocation of a fixed promotion budget between domestic and export markets when the commodity in question represents a significant portion of world trade and is protected in the domestic market by a deficiency-payment program. Optimal allocation decisions are governed by advertising elasticities in the domestic and export markets and the export market share. The purpose of this research is to determine optimal market allocation rules for a commodity that is traded in international markets but is protected in the domestic market by a deficiency-payment scheme. The allocation issue is important because, in a large open-economy situation, promotion affects treasury outlays for deficiency payments. The nexus between deficiency payments and promotion suggests treasury savings are possible if funds are allocated to minimize the combined cost of promotion and protection.Kaiser, Harry M. and J. Carlos Reberte. "Impact of Generic Fluid Milk Advertising on Whole, Lowfat, and Skim Milk Demand." Journal of Dairy Science 79(1996):2284-91.
The purpose of this study was to determine whether there was a statistical difference in sales responsiveness to advertising among consumers of whole, lowfat, and skim milks. A case study for New York City was presented using monthly time series for demand data from 1986 through 1992. Separate demand functions were estimated for whole, lowfat, and skim milks when advertising expenditures for generic fluid milk were used as one of the explanatory variables. The results indicated that long-run advertising elasticities (i.e., percentage change in per capita sales given a 1 percent change in generic fluid milk advertising expenditures) were 0.16, 0.19, and 0.18 for whole, lowfat, and skim milk products, respectively. These estimates were higher than previous estimates for generic fluid milk advertising elasticities in New York City. Based on a one-sided t-test, the long term sales response to generic advertising was significant for all three fluid milk products. Furthermore, the hypothesis that the advertising elasticities for the three milk products are identical could not be rejected at the 10 percent significance level. Therefore, we concluded that generic fluid milk advertising, as currently structured, had a positive and equal impact on whole, lowfat, and skim milk demand.Kaiser, Harry M., Olan D. Forker, John Lenz, and Chin-Hwa Sun. "Evaluating Generic Dairy Advertising Impacts on Retail, Wholesale, and Farm Milk Markets." Journal of Agricultural Economics Research 44(No. 4, 1994):3-17.
This article develops a dynamic econometric model of the national dairy industry to simulate the impacts of generic advertising on the demand for milk and dairy products, farm and consumer prices, and producer welfare. Two advertising scenarios are analyzed: (1) a historic scenario, and (2) a pre- National Dairy Promotion and Research Board (NDPRB) scenario, where generic advertising expenditures are held constant at their quarterly levels during the year prior to the NDPRB's inception. The results indicate that the program has been effective in raising farm prices, increasing dairy product demand, and reducing cheese and butter purchases by the government.Kaiser, H.M., D.J. Liu, T.D. Mount, and O.D. Forker. "Impacts of Generic Dairy Promotion on the Retail, Wholesale, and Farm Sectors of the U.S. Dairy Market." American Journal of Agricultural Economics 71(1989):1351.
The impacts of generic dairy promotion at the retail, wholesale, and farm levels are analyzed. The market effects of alternative advertising strategies are different depending upon whether the dairy market is under a competitive or government support regime. Fluid advertising increases consumption and prices more than manufactured advertising.Liu, Donald J., Harry M. Kaiser, Olan Forker, and Timothy Mount. "An Economic Analysis of the U.S. Generic Dairy Advertising Program Using an Industry Model." Northeastern Journal of Agricultural and Resource Economics 19(1990):37-48.
The market impacts of generic dairy advertising are assessed using an industry model which encompasses supply and demand conditions at the retail, wholesale, and farm levels, and government intervention under the dairy price support program. The estimated model is used to simulate price and quantity values for four advertising scenarios: (1) no advertising, (2) historical fluid advertising, (3) historical manufactured advertising, and (4) historical fluid and manufactured advertising. Compared to previous studies, the dairy industry model provides additional insights into the way generic dairy advertising influences prices and quantities at the retail, wholesale, and farm levels.Reberte, J. Carlos, Harry M. Kaiser, John Lenz, and Olan D. Forker. "Generic Advertising Wearout: The Case of the New York City Fluid Milk Campaign." Journal of Agricultural and Resource Economics 21(1996):199-209.
This article examines two major generic fluid milk advertising campaigns in New York City during the 1986-92 period. Estimates from a time-varying parameter model show that the evolution of the impact of generic advertising on fluid milk sales over each campaign followed a bell-shaped pattern. Results also show that the first campaign was effective for twice as long as the second campaign and that it had a higher peak and higher average advertising elasticity. These findings may reflect long- term generic milk advertising wearout in the New York City market.Schmit, Todd M., J. Carlos Reberte, and Harry M. Kaiser. "An Economic Analysis of Generic Egg Advertising in California, 1985-95." Agribusiness: An International Journal (forthcoming).
A supply and demand econometric model of the California egg industry was estimated to evaluate the impact of generic egg advertising on producer prices and returns from 1985-95. Econometric estimation indicated advertising had a positive impact on producer prices and net profits. The model was simulated with existing advertising expenditure levels, and with expenditures 1 percent higher than actual levels. A 1 percent increase in advertising expenditures resulted in an average 0.13 percent increase in producer prices and a marginal rate of return to advertising of 6.9 percent. In other words, each additional dollar spent on advertising generated $6.90 in producers' profits.Suzuki, Nobuhiro, Harry M. Kaiser, John E. Lenz, Kohei Kobayashi, and Olan D. Forker. "Evaluating Generic Milk Promotion Effectiveness with an Imperfect Competition Model." American Journal of Agricultural Economics 76(1994):296-302.
A framework is proposed for incorporating the degree of market competition in evaluating milk promotion effectiveness. The imperfect competition model allows simultaneity in price and quantity with an endogenous fluid milk premium. The model's usefulness is demonstrated with Japanese generic milk promotion data. Results show a conventional exogenous-price or exogenous-premium model will underestimate returns to milk promotion.Watanabe, Yasuhito, Nobuhiro Suzuki, and Harry M. Kaiser. "Identifying Consumer Characteristics Associated With Japanese Preferences Toward Milk Products." Agribusiness: An International Journal (forthcoming).
This article identifies consumer characteristics associated with preferences toward milk products. Using Japanese consumer data and Quantification Theory Type III, consumers' milk and other beverage preferences are quantified. The results indicate that men, middle-aged people, and people with no calcium concerns prefer soda and alcoholic beverages to milk beverages, while younger people, larger families, and people with calcium concerns drank more milk more often. The results also indicate that non-milk drinkers, older people, people with no calcium concerns, and men were less inclined to consume cheese and yogurt, and stronger health concerns increased demand for milk and dairy products.