Testing cost vs. profit function

Asche, Frank; Kumbhakar, Subal C.; Tveterås, Ragnar

doi:10.1080/13504850600592655

Cited by 14 publications

(5 citation statements)

References 14 publications

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“…Asheim et al (2011) estimated low domestic short-run and long-run price responsiveness of the Norwegian salmon supply (0.091 in the short run and 0.141 in the long-run). In contrast, Steen et al (1997), Asche et al (2007), and Andersen et al (2008) all estimated a long-run domestic salmon supply elasticity of about 1.4 to 1.5. Many of the NSC salmon promotion studies listed in Table 1 adopted some version of the domestic salmon supply elasticity of 1.54 estimated by Steen et al (1997) in their analyses.…”

Section: Norwegian Seafood Export Supply Price Responsementioning

confidence: 94%

Generic promotion of Norwegian seafood exports

Williams

Capps

2020

IFAM

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The Norwegian Seafood Council (NSC) works cooperatively with its seafood industry to develop foreign demand for Norwegian seafood through generic promotion and advertising. The generic promotion activities are financed through fees levied on all Norwegian seafood exports. Using an econometric simulation approach, the study addresses two key questions regarding the NSC generic seafood export promotion programs over time: (1) What have been the effects of those programs on the Norwegian seafood export volume, price, and revenue in the aggregate? (2) Have Norwegian seafood producers, exporters, and other stakeholders benefitted from the export-levy-funded generic export promotion programs? Examining potential scenarios for a likely range of the price responsiveness of the Norwegian seafood export supply, the study finds that NSC promotion added about 12% to the aggregate export value of Norwegian seafood between 2003 and 2017 resulting from an addition to the export price and volume of 10% and 4%, respectively. About 17% of stakeholder profits over that period was due to the promotion programs resulting in an industry profit benefit to cost ratio of about 12 to 13 to one.

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Section: Norwegian Seafood Export Supply Price Responsementioning

confidence: 94%

Generic promotion of Norwegian seafood exports

Williams

Capps

2020

IFAM

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“…Therefore, we also refer to the PMT, which explains international performance through the successful implementation of strategies (Schmid and Kotulla 2011). This theory postulates that a firm's primary goal is to maximize profits, which can be achieved by maintaining high sales (e.g., through the benefits of market segmentation) and low costs (e.g., through the realization of economies of scale) (Asche, Kumbhakar, and Tveterås 2007; Kumbhakar 2002). For example, firms adapt in foreign countries when the sales-maximizing effect of strategic flexibility and price discrimination is larger than the cost-minimizing effect of economies of scale from international standardization and when the frictions between headquarters and foreign subsidiaries are reduced (Samiee and Roth 1992; Shoham 1996; Shoham and Albaum 1994).…”

Section: Theoretical Foundation and Conceptual Frameworkmentioning

confidence: 99%

Transferring the Retail Format Successfully into Foreign Countries

Swoboda

Elsner

2013

Journal of International Marketing

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Research shows that most retailers expand abroad by transferring some elements of their format, and therefore their value chain, unchanged, while adapting other elements. However, little is known about how strongly a retail format's standardized or adapted elements affect performance in a foreign country. To shed light on this issue, this study focuses on the design of important processes and offerings, as both determine retailers’ efficiency and sales. This study proposes that successful retailers build on the unchanged know-how parts of the format by combining more standardized core elements with adapted peripheral elements. The authors draw from a survey of 102 international retailers and interviews with 126 executives conducted at their headquarters. The results show that retailers transfer offers (marketing programs) and processes (marketing and supply chain) differently and hierarchically; that is, peripheral elements are allowed to vary, whereas core elements are transferred in a more standardized manner. Furthermore, the relationship between marketing program elements and performance varies: the use of standardized core elements (e.g., store types, locations) and adapted peripheral elements (e.g., assortments, promotions) is advisable for increasing performance in another country. Processes are only indirectly associated with performance. These observations hold true for both psychically close and distant countries.

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“…Asheim et al (2011) reported a low price elasticity of Norwegian salmon supply in both the short run (0.091) and long run (0.141). Steen, Asche, and Salvanes (1997), Asche, Kumbhakar, and Tveterås (2007) and Andersen, Roll, and Tveterås (2008), however, reported higher Norwegian salmon supply elasticities of about 1.4 to 1.5. The export supply elasticities estimated or assumed by studies of the NSC salmon promotion program have ranged from close to zero to 2.0 (Williams and Capps 2017).…”

Section: Methodology and Datamentioning

confidence: 98%

Advertising with Supply Control: Some Implications of Norwegian Whitefish Export Promotion

Williams¹,

Capps²

2019

Agric. Resour. Econom. Rev.

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An issue for generic advertising in agricultural markets with unregulated supplies is that the promotion-induced demand shift could lead to a supply response that substantially attenuates the price effects of the promotion. For the generic promotion of fish exports, however, the concern is generally just the opposite—the possibility that extensive government supply controls could render promotion efforts to expand export sales ineffectual due to little or no supply response. This study considers the effects of government whitefish (cod, haddock, and others) supply controls on the effectiveness of the Norwegian Seafood Council (NSC) whitefish export promotion program. We use an econometric simulation model to measure the effectiveness and returns to NSC whitefish export promotion under a range of possible export supply control conditions. Results indicate that effective supply control maximizes the return to promotion and that ineffectual supply control imposes a potentially large opportunity cost on the promoting industry.

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Testing cost vs. profit function

Cited by 14 publications

References 14 publications

Generic promotion of Norwegian seafood exports

Generic promotion of Norwegian seafood exports

Transferring the Retail Format Successfully into Foreign Countries

Advertising with Supply Control: Some Implications of Norwegian Whitefish Export Promotion

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