Evaluating the Life Cycle of a Product Warning

Robert G. Orwin, Raymond E. Schucker and Raymond C. Stokes
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Robert G. Orwin: United States General Accounting Office
Raymond E. Schucker: United States Food and Drug Administration
Raymond C. Stokes: United States Food and Drug Administration

Evaluation Review, 1984, vol. 8, issue 6, 801-822

Abstract: The effect of the saccharin warning label on sales of diet soft drinks was modeled with an autoregressive integrated moving average (A RIMA) process. Retail price trends and attendant publicity were modeled concurrently to separate these effects from those due to the warning. Results indicated that the label produced a small yet statistically significant reduction in sales, with an abrupt onset and, thus far, permanent duration. Reasons for the absence of decay effects, limitations of interpretability, and ideas for improving future evaluations of warning labels are discussed.

Date: 1984
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Persistent link: https://EconPapers.repec.org/RePEc:sae:evarev:v:8:y:1984:i:6:p:801-822

DOI: 10.1177/0193841X8400800603

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