THE EFFECTS OF ADVERTISING ON MILK DEMAND ELASTICITIES AND STRUCTURAL CHANGES IN KOREAN MILK MARKETS

Kwansoo Kim and Jae-Sun Roh

No 22155, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper examines the effectiveness of generic commodity promotion program based on checkoff funds by estimating the demand elasticities of advertisement. Focusing on a possible structural change in terms of advertisement strategies, we model econometrically the effects of generic advertising on milk demand in Korean milk. Econometric results show significant differences in the effects of advertising on milk demand depending on whether the market is mainly characterized by either brand or generic advertisement (the generic advertising regime versus the brand advertising regime). The demand elasticity of advertisement is estimated to be smaller in the brand advertising regime than the generic advertising regime. This suggests a positive impact of generic commodity promotion program in Korean milk market. In addition, we found evidence that milk imports play an important role in characterizing two different regimes: a structural shift occurs when the imported amount of milk is significant.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 17
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/22155/files/sp03ki02.pdf (application/pdf)

Related works:
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:aaea03:22155

DOI: 10.22004/ag.econ.22155

Access Statistics for this paper

More papers in 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().