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

Author:
Zheng, Yuqing, Kaiser, Harry M.
Source:
Agribusiness 2009 v.25 no.3 pp. 351-368
ISSN:
0742-4477
Subject:
milk industry, food marketing, marketing costs, milk, retail marketing, marketing strategies, generic advertising, check-off programs, demand elasticities, marketing cooperatives, New York
Abstract:
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].
Agid:
760938