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

See all articles by Yuqing Zheng

Yuqing Zheng

University of Kentucky - College of Agriculture - Department of Agricultural Economics

Harry M. Kaiser

Cornell University - School of Applied Economics and Management

Date Written: October 14, 2008

Abstract

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

Zheng, Yuqing and Kaiser, Harry M., Evaluating the Effectiveness of Generic Advertising Versus Nonadvertising Marketing Activities on New York State Milk Markets (October 14, 2008). Agribusiness: An International Journal, Vol. 25, 2009, Available at SSRN: https://ssrn.com/abstract=1284571

Yuqing Zheng (Contact Author)

University of Kentucky - College of Agriculture - Department of Agricultural Economics ( email )

Lexington, KY 40546
United States

Harry M. Kaiser

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States
607-255-1598 (Phone)
607-254-4335 (Fax)

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