Effect of Generic Advertising on the Demand for Fluid Milk: The Case of the Texas Market Order

Oral Capps and John D. Schmitz

Journal of Agricultural and Applied Economics, 1991, vol. 23, issue 2, 131-140

Abstract: This analysis indicates that generic advertising expenditures, ceteris paribus, generated rightward shifts in demand for fluid milk in the Texas Market Order over the period January 1980 to September 1988. Generally, the results from this study are in agreement with previous research efforts which suggest that generic advertising can increase the demand for fluid milk. Importantly, in this analysis, the impacts of television and radio advertising have been effectively disentangled. Television advertising generates a response that wears off more quickly than radio advertising. Also, the long-run effect of radio advertising is about 1.75 times greater than the long-run effect of television advertising.

Date: 1991
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