DEMOGRAPHIC VERSUS MEDIA ADVERTISING EFFECTS ON MILK DEMAND: THE CASE OF THE NEW YORK CITY MARKET

Henry Kinnucan

Northeastern Journal of Agricultural and Resource Economics, 1986, vol. 15, issue 01, 9

Abstract: An advertising-sales response model is extended to include the effects of demographic factors (age and race) as additional determinants of milk demand. Previous research indicates that the age structure of a population and its racial composition are primary factors influencing fluid milk sales. Failure to incorporate these factors in the milk demand model results in a 30 percent downward biased estimate of the advertising effect. Consequently, the economic effectiveness of milk advertising is understated when the effects of demographic variables are ignored. Changes in demographic factors (growing nonwhite population and shrinking teenage market) appear to explain the relatively flat trend in per capita milk sales in the New York City market over the period 1971-80-a period in which dairy producers spent $12 million on generic advertising of milk. Net returns to Federal Order 2 dairy farmers from generic advertising of fluid milk is estimated to average $6.07 per media dollar invested over the 1972-79 period.

Keywords: Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Date: 1986
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://ageconsearch.umn.edu/record/28885/files/15010066.pdf (application/pdf)

Related works:
Working Paper: Demographic Versus Media Advertising Effects on Milk Demand: The Case of the New York City Market (1982)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:nejare:28885

DOI: 10.22004/ag.econ.28885

Access Statistics for this article

More articles in Northeastern Journal of Agricultural and Resource Economics from Northeastern Agricultural and Resource Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().