Evaluating the Effectiveness of Generic Advertising Versus Nonadvertising Marketing Activities on New York State Milk Markets
Agribusiness: An International Journal, Vol. 25, 2009
32 Pages Posted: 15 Oct 2008
Date Written: October 14, 2008
This study distinguishes nonadvertising marketing activities from generic advertising and investigates their separate impacts on the retail demand for fluid milk in New York State. Advertising, having an estimated elasticity (of demand) of 0.038 using panel data, is found to be about five times as effective as nonadvertising and therefore remains the more powerful marketing tool. Such results have policy implications in benefit-cost analysis and optimal allocation of fluid-milk check-off funds. Our results suggest that NYS dairy producers have much to gain from investing more of their check-off budgets in advertising.
Keywords: generic advertising, nonadvertising marketing activities, public relations, sales promotion, optimal allocation
JEL Classification: Q11, M37
Suggested Citation: Suggested Citation