Advertising and Retail Promotion of Washington Apples: A Structural Latent Variable Approach to Promotion Evaluation

Timothy Richards, Xiaoming Gao and Paul M. Patterson

No 28547, Working Papers from Arizona State University, Morrison School of Agribusiness and Resource Management

Abstract: "Commodity promotion" consists of many activities, each designed to contribute to a consumer's product knowledge or influence tastes. However, both knowledge and tastes are unobservable, or latent, variables influencing demand. This paper specifies a dynamic structural model of fresh fruit demand that treats promotion and other socioeconomic variables as "causal" variables influencing these latent variables. Estimating this state-space model using a Kalman filter approach provides estimates of both the system parameters and a latent variable series. The results show that these latent effects contribute positively to apple and other fruit consumption, while reducing banana consumption.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 36
Date: 1998
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https://ageconsearch.umn.edu/record/28547/files/wp980005.pdf (application/pdf)

Related works:
Journal Article: ADVERTISING AND RETAIL PROMOTION OF WASHINGTON APPLES: A STRUCTURAL LATENT VARIABLE APPROACH TO PROMOTION EVALUATION (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asumwp:28547

DOI: 10.22004/ag.econ.28547

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