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ON THE ESTIMATION OF ADVERTISING EFFECTS FOR BRANDED PRODUCTS: AN APPLICATION TO SPAGHETTI SAUCES AgEcon
Capps, Oral, Jr.; Seo, Seong-Cheon; Nichols, John P..
Using IRI Infoscan data pertaining to six types of spaghetti sauces and employing an extension of the demand systems framework developed by Duffy, estimates are obtained of own-price, cross-price, and total expenditure elasticities as well as own- and cross-product advertising elasticities. We augment the Duffy model through the use of a polynomial inverse lag mechanism to deal with the carryover effects of advertising. We also account for the impacts of features in newspaper fliers, in-store displays, and coupons. Advertising efforts by industry leaders in spaghetti sauce produce positive own-advertising elasticities (ranging from -.000003 to -.0094). Own-price elasticities are in the elastic range, and nearly all compensated cross-price effects are...
Tipo: Journal Article Palavras-chave: Advertising effects; Demand systems; IRI Infoscan data; Polynomial inverse lag; Rotterdam model; Marketing.
Ano: 1997 URL: http://purl.umn.edu/15054
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