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ADVERTISING AND RETAIL PROMOTION OF WASHINGTON APPLES: A STRUCTURAL LATENT VARIABLE APPROACH TO PROMOTION EVALUATION AgEcon
Richards, Timothy J.; Gao, Xiaoming; Patterson, Paul M..
"Commodity promotion" consists of many activities, each designed to contribute to a consumer's product knowledge or influence tastes. However, both knowledge and tastes are unobservable, or latent, variables influencing demand. This paper specifies a dynamic structural model of fresh fruit demand that treats promotion and other socioeconomic variables as "causal" variables influencing these latent variables. Estimating this state-space model using a Kalman filter approach provides estimates of both the system parameters and a latent variable series. The results show that these latent effects contribute positively to apple and other fruit consumption, while reducing banana consumption.
Tipo: Journal Article Palavras-chave: Commodity promotion; Demand system; DYMIMIC; Fresh fruit; Kalman filter; LA/AIDS; Latent variables; Marketing.
Ano: 1999 URL: http://purl.umn.edu/15132
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Advertising and Retail Promotion of Washington Apples: A Structural Latent Variable Approach to Promotion Evaluation AgEcon
Richards, Timothy J.; Gao, Xiaoming; Patterson, Paul M..
"Commodity promotion" consists of many activities, each designed to contribute to a consumer's product knowledge or influence tastes. However, both knowledge and tastes are unobservable, or latent, variables influencing demand. This paper specifies a dynamic structural model of fresh fruit demand that treats promotion and other socioeconomic variables as "causal" variables influencing these latent variables. Estimating this state-space model using a Kalman filter approach provides estimates of both the system parameters and a latent variable series. The results show that these latent effects contribute positively to apple and other fruit consumption, while reducing banana consumption.
Tipo: Working or Discussion Paper Palavras-chave: Commodity promotion; Demand system; DYMIMIC; Fresh fruit; Kalman filter; LA/AIDS; Latent variables; Marketing.
Ano: 1998 URL: http://purl.umn.edu/28547
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An Economic Evaluation of the Hass Avocado Promotion Order’s First Five Years AgEcon
Carman, Hoy F.; Li, Lan; Sexton, Richard J..
The U.S. avocado industry has evolved from an emphasis on seasonal domestic production of a mix of avocado varieties to year-round availability of domestic and imported Hass avocados. California avocado producers, who account for approximately 90% of U.S. avocado production and essentially all U.S. Hass avocado production, have funded promotional programs for avocados since 1961. With few imports of avocados prior to the early 1990s, the benefits from these demand-enhancing programs flowed directly to California producers. Imports of avocados into the United States have increased steadily since then, resulting in a free-rider problem that led ultimately to creation of the Hass Avocado Promotion, Research, and Information Act of 2000. This act established...
Tipo: Technical Report Palavras-chave: Avocados; Commodity promotion; Marketing order; HAB; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Land Economics/Use; Marketing.
Ano: 2009 URL: http://purl.umn.edu/121697
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Excise Taxes and Commodity Promotion: A Diagrammatic Motivation AgEcon
Holloway, Garth J..
This note shows how the solution to the promotion problem—the problem of locating the optimal level of advertising in a downstream market—can be motivated simply, diagrammatically, and without the need to resort to complicated mathematical arguments. The optimality condition is for the level of the farm price to remain invariant to marginal adjustments in the program.
Tipo: Journal Article Palavras-chave: Commodity promotion; Excise taxes; Optimality; Agribusiness; Marketing.
Ano: 1998 URL: http://purl.umn.edu/90444
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Incentives to Advertise and Product Differentiation AgEcon
Hunnicutt, Lynn; Israelsen, L. Dwight.
Recent court rulings question the ability of commodity groups to fund generic promotions through mandatory check-off programs. A model examining incentives to fund brand advertisements when both brand and generic advertising exist is presented. Brand advertising expands the market by attracting new consumers to the industry, and allows the advertising firm to take customers from rivals in the industry. Homogeneous products are advertised too little relative to the amount that maximizes total industry profits, and brandable products are advertised too much. The optimal check-off rate is derived, and the Dorfman-Steiner condition is shown to be a special case of this model.
Tipo: Journal Article Palavras-chave: Advertising; Branding; Check-off programs; Commodity promotion; Marketing.
Ano: 2003 URL: http://purl.umn.edu/31057
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