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Broadcast Advertising and U.S. Demand for Alcoholic Beverages
Author(s) -
Nelson Jon P.
Publication year - 1999
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.1999.tb00199.x
Subject(s) - advertising , per capita , consumption (sociology) , economics , differential (mechanical device) , television advertising , alcohol consumption , business , alcohol , population , engineering , demography , sociology , biochemistry , chemistry , aerospace engineering , social science
Quarterly data for 1977‐1994 on alcohol consumption and advertising are used to estimate a differential demand system, including explanatory variables for broadcast advertising and print advertising. The model explains the growth rate of per capita consumption dependent on explanatory variables for prices, real income, demographic changes, and real advertising by media and beverage. Empirical results also are reported for total consumption of pure alcohol. The results for the three beverages and total alcohol indicate that advertising has little or no effect on demand. The empirical evidence thus supports the notion that regardless of media, advertising affects mainly brand shares.