Economies of Scale in Advertising Beer and Cigarettes

Peles, Yoram C.

doi:10.1086/295330

Cited by 51 publications

(13 citation statements)

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“…Apparently the alcohol industry reduces advertising very soon after a period of strong sales, with a view to maximizing profits in the short term. By contrast, after a reduction in sales the alcohol industry seems to increase advertising with a view to changing consumer brand and beverage preferences [24][25][26][27][28][29]33]. The insignificant results in Tables x and 4 are consistent with such an interpretation of the data.…”

Section: Discussionsupporting

confidence: 52%

“…The other comparison in Table 3 revealed that a significant increase in advertising was accompanied by a significant decrease in consumption. Previous researchers [22][23][24][25][26][27][28][29][30][31] have also reported that alcohol advertising did not increase sales, or even resulted in diminishing returns from sales [32], as above. This is apparently the first time that the filtering technique developed by Box & Jenkins [2] has been applied, with both types of lags, to alcohol advertising and consumption data, although Skog [3,4] had previously shown the advantages of the technique for studying alcohol-related violent deaths.…”

Section: Discussionmentioning

confidence: 87%

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Consumption and advertising of alcoholic beverages in Australia, 1969‐86

Smith

1990

Drug and Alcohol Review

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The objective of the study was to examine the relationship between alcohol consumption per adult (>/=15 years old) and expenditure on alcohol advertising per adult in Australia for the 18 years from 1969 to 1986. In addition, analyses were made of the extent to which annual changes in consumption were related to annual changes in advertising. The results showed that at the macro or aggregate level, alcohol advertising appeared to have little or no effect on alcohol consumption. By contrast, the level of consumption was positively related to the level of advertising 42 months later. In the very short term, an increase in consumption was followed by a decrease in advertising, and vice versa. The Australian results were found to be consistent with a large number of overseas studies which failed to find that alcohol advertising increased total consumption, although the advertising may have affected brand and beverage preferences. Attention is drawn to a number of methodological issues relevant to the study, and in particular the need for evaluation studies of specific advertising campaigns.

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Section: Discussionsupporting

confidence: 52%

Section: Discussionmentioning

confidence: 87%

Consumption and advertising of alcoholic beverages in Australia, 1969‐86

Smith

1990

Drug and Alcohol Review

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“…In most industries, firm size correlates with market size; the "larger the company, the wider is the area in which the products are being sold" (Peles, 1971;p.32). Most large companies are spread over various regions or markets, and small companies usually focus on local markets.…”

Section: The Moderating Role Of Hotel Sizementioning

confidence: 99%

Does advertising spending improve sales performance?

Assaf

Josiassen

Mattila

et al. 2015

International Journal of Hospitality Management

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“…Most observers take these data as evidence that strong economies of scale operate in the brewing industry (Cockerill 1977;Elzinga 1986). Both beer production and advertising are believed to provide economic advantages to the largest firms (Greer 1971(Greer , 1981Peles 1971), production because of the efficiency of heavily capitalized modern plants, advertising because of the wide exposure offered by expensive national media. Finally, a new, possibly important trend is appearing.…”

Section: United Statesmentioning

confidence: 99%

“…See. for example, Horowitz and Horowitz 1965;Peles 1971; Hawkins and Radcliffe 1971;Greer 1971Greer , 1981; Hatten and Schendel 1977;Ornstein 1981;Mueller and Schwalbach 1980;Lynk 1984;and Tremblay and Tremblay 1988). Figures 1 and 2.…”

Section: Introductionmentioning

confidence: 99%

Brewery and Brauerei: The Organizational Ecology of Brewing

Carroll

Preisendoerfer²,

Swaminathan

et al. 1993

Organization Studies

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Germans and Americans differ in their beer drinking habits and customs. The organizational structures of their brewing industries also differ: Germany is notable for the highly fragmented nature of its industry, which contains many more breweries than the larger American industry. Yet the historical evolution of the two brewing industries is remarkably similar. In both Germany and the U.S., the number of breweries grew slowly for a long period, then expanded rapidly in the late 19th century, and finally declined severely for almost a century. Intrigued by this common pattern, we attempt to explain long-term organizational change in the two industries using the ecological perspective on organizations. We focus on the organizational ecology model of density-dependent legitimation and competition. Our tests use life history data on all breweries known to have operated in the U.S. and Germany during the period 1861 to 1988. We estimate and report specific tests of the density model using stochastic rates of organizational founding and mortality. The findings are generally supportive of the model and suggest that the organizational evolution of both the German and American brewing industries was density dependent.

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Economies of Scale in Advertising Beer and Cigarettes

Cited by 51 publications

References 0 publications

Consumption and advertising of alcoholic beverages in Australia, 1969‐86

Consumption and advertising of alcoholic beverages in Australia, 1969‐86

Does advertising spending improve sales performance?

Brewery and Brauerei: The Organizational Ecology of Brewing

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