TARGETED ADVERTISING IN THE BREAKFAST CEREAL INDUSTRY

Joshua Berning and Adam Rabinowitz

Journal of Agricultural and Applied Economics, 2017, vol. 49, issue 3, 382-399

Abstract: We examine the relationship of product characteristics of ready-to-eat breakfast cereal and targeted television advertising to specific consumer segments. We compile a unique data set that includes brand-packaging characteristics, including on-box games, nutrition information, and cobranding. We find that the relationship of television advertising and a cereal's brand-packaging characteristics varies by target audience. Our results provide insight into understanding how manufacturers strategically utilize branding, packaging, and television advertising. This can help industry and policy makers develop food product advertising policy. This analysis extends to other product markets where extensive product differentiation and promotion are present as well.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:49:y:2017:i:03:p:382-399_00

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