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Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry

Xi He (), Rigoberto Lopez () and Yizao Liu ()
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Yizao Liu: University of Connecticut

No 37, Working Papers from University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy

Abstract: This paper uses data collected from hypothetical and non-hypothetical choice-based conjoint survey instruments to estimate willingness to pay for distance-based local food products. The survey was administered to three different groups of respondents: members of a consumer buying club with local and grass-fed market experience, a random sample of Maryland residents, and shoppers at a non-specialty suburban Maryland grocery store. We find that both the random sample of Maryland residents and the grocery store shoppers are willing to pay a premium for local products, but view local and grass-fed production as substitutes. Conversely, members of the consumer buying club are willing to pay significantly less for local than their counterparts, but do not conflate local with other premium attributes, such as grass-fed production.

Keywords: Online advertising; media substitution; translog cost function; CSDs (search for similar items in EconPapers)
JEL-codes: D12 L13 M37 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2015-07
New Economics Papers: this item is included in nep-com, nep-dcm, nep-mkt and nep-pay
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Related works:
Working Paper: Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry (2015) Downloads
Working Paper: Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry (2015) Downloads
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