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The Demand for Canadian Fats and Oils: A Case Study of Advertising Effectiveness
Author(s) -
Goddard Ellen W.,
Amuah Alex K.
Publication year - 1989
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242030
Subject(s) - consumption (sociology) , habit , economics , vegetable oil , agricultural economics , advertising , business , food science , chemistry , psychology , social science , sociology , psychotherapist
The fats and oils market in Canada is characterized by generic (butter) and brand (margarine, shortening, vegetable oils) advertising. In this study the economic interrelationships in the consumption of fats and oils are examined and the effectiveness of the advertising programs is evaluated. The two‐stage demand model used is made up of a single equation determining Canadian aggregate expenditure on fats and oils and an expenditure share system derived from a translog indirect utility function for each of four products; butter, margarine, shortening, and vegetable oils. The demand for individual fats and oils is significantly affected by lagged advertising expenditure levels, habit persistence and a time trend, as well as the traditional variables of price and expenditure.