You Know It's Going to Be a Bad Day When a 60 Minutes Camera Crew Is Waiting for You at Work - A Case Study of Chicken Contamination Publicity

Dean G. Fairchild and Roger A. Dahlgran

No 285652, 1981-1999 Conference Archive from NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: Adverse publicity about food contamination can depress demand, causing lost producer revenue. TV and print news coverage of bacterial contamination of chicken in the U.S. is incorporated into an inverse demand for chicken which is estimated using 1982 and 1991 data. A beta binomial audience-exposure distribution is used to estimate net reach and average frequency of exposure to contamination publicity. It was found that for each unit of increase in weekly publicity frequency, prices were depressed by 1.2 percent, leading to a $760 million retail loss to the chicken industry. This amounts to less than one-quarter of one percent of revenue over the ten years studied.

Keywords: Marketing (search for similar items in EconPapers)
Date: 1996-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nc8191:285652

DOI: 10.22004/ag.econ.285652

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