Do Brand Advertising Spillovers Matter?

Li, Xun; López, Rigoberto A.

doi:10.1002/agr.21405

Cited by 7 publications

(4 citation statements)

References 31 publications

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“…First, energy plays an important role in milk production as well as transportation and marketing (Brush et al., ). Second, given the prevalence of obesity and over‐consumption of sugar‐sweetened beverages (SSBs), milk is considered a lower‐calorie and more nutritious substitute for SSBs (Heard et al., ; Li and Lopez, ; Runge et al., ). Third, the price of milk as a staple food is closely connected with consumers’ welfare and social well‐being, particularly children's.…”

Section: Introductionmentioning

confidence: 99%

Energy‐milk price transmission at the product brand level

López

Yang

2018

Agricultural Economics

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This article estimates the pass-through rates between diesel fuel and retail milk prices at the product brand level. Using a random coefficient logit demand model and taking the direct and indirect impacts of energy prices, this research identifies changes in pass-through rates before and after the great recession in 2008. Empirical results show that diesel prices significantly impacted the retail prices of milk products and are an important determinant of food price inflation. Pass-through rates are estimated to range from 0.16 to approximately 0.60 through 2008 with an average of 0.22 for the whole period. Statistical tests indicate that pass-through rates before June 2008 were significantly higher than after June 2008 when they dropped significantly to 0.04 to 0.17. Interestingly, private label brands have the lowest pass-through rates, implying that compared to manufacturer brands, private label prices are more insulated from diesel price shocks.JEL classifications: D22, L66, Q13, Q41

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Section: Introductionmentioning

confidence: 99%

Energy‐milk price transmission at the product brand level

López

Yang

2018

Agricultural Economics

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“…Generic advertising is the focus of many studies that evaluate the effect of advertising on demand for food and beverages. However, generic advertising does not distinguish products from different manufacturers, and it is impossible to evaluate the spillover effect of advertising among different brands (Li and Lopez 2015). Moreover, advertising can differ in numerous aspects such as geographical coverage or delivery methods.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of local and national advertising across brands: the case of yogurt in China

Chen

Zhou

2020

Aus J Agri & Res Econ

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This study examines Chinese consumer's demand for yogurt and evaluates the effect of advertising on yogurt demand in four first-tier cities in China. An almost ideal demand system augmented with advertising is estimated, and advertising on local media channels is distinguished from that on national media channels. The main findings are that Chinese demand for yogurt is generally elastic, yet local brands tend to have smallest own-price elasticities. More importantly, while local advertising has generally a positive effect on yogurt demand, national advertising is found to decrease demand in Beijing and Guangzhou. This may be due to households' distinct media preference across cities, as well as advertising cannibalisation within brand. Lastly, advertising one yogurt brand may function similarly as generic advertising in promoting demand for yogurt with other brands. Corresponding marketing implications are drawn for yogurt manufacturers and marketers.

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“…This gap in the literature is particularly noteworthy as researchers have found that direct marketing channels for local foods (e.g., farm to consumer) have largely stagnated, with much of the growth in local food sales concentrated in intermediated marketing channels (Low et al, 2015). These intermediated marketing channels, including grocery stores, are well studied in other contexts (Cai et al, 2018; Jaenicke & Carlson, 2015; Li & Lopez, 2015) and differ from direct marketing channels in the large and varied nature of the processed and packaged goods offered to consumers.…”

Section: Introductionmentioning

confidence: 99%

I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods

2022

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This study investigates consumer preferences for local brands of consumer packaged goods. Using a structural model of consumer demand for ice cream and data on retail ice cream sales from multiple locations of a large food retailer, we estimate consumer demand for local brands of ice cream and the willingness to pay for the local attribute. Using fixed and random coefficients logit models of product choice with cost shifters as instruments, we find that Ohio consumers are willing to pay, on average, an additional $0.13 per serving for local brands of ice cream. In counterfactual simulations, we estimate that replacing local brands of ice cream would reduce welfare by $2.78 million dollars annually for consumers in Ohio. For policymakers seeking to maintain and attract new local food producers, these results provide new insights into the potential gains that could result from increased local consumer packaged goods entrants [EconLit Citations: D12, D61, Q11, Q18].

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Do Brand Advertising Spillovers Matter?

Cited by 7 publications

References 31 publications

Energy‐milk price transmission at the product brand level

Energy‐milk price transmission at the product brand level

Effects of local and national advertising across brands: the case of yogurt in China

I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods

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