NEW VARIETIES AND THE RETURNS TO COMMODITY PROMOTION: THE CASE OF FUJI APPLES

Timothy Richards and Paul M. Patterson

Agricultural and Resource Economics Review, 2000, vol. 29, issue 01, 14

Abstract: The Fuji apple variety is relatively new in the U.S. As a new product, questions concern the relative impact of consumer learning by experience, by variety-specific promotion, or by generic apple promotion. A two-stage (LES/LAIDS) model incorporating both types of promotion is used to estimate the effect of generic and variety specific promotion, as well as consumer experience, on the demand for Fuji apples. Estimates show each to have a positive impact, and also show new or speciality apple varieties to be relatively price inelastic, but income elastic. Grower returns to promotion are calculated with an equilibrium displacement model of price changes and producer surplus. Changes in producer surplus provide a base-scenario benefit: cost ratio of 6.33:1.

Keywords: Consumer/Household Economics; Marketing (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:31339

DOI: 10.22004/ag.econ.31339

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