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Evaluating the effectiveness of generic advertising versus nonadvertising marketing activities on New York State milk markets
Author(s) -
Zheng Yuqing,
Kaiser Harry M.
Publication year - 2009
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.20208
Subject(s) - econlit , marketing , advertising , economics , state (computer science) , business , computer science , medline , algorithm , political science , law
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.