Young, Ian (author), Waddell, Lisa (author), Harding, Shannon (author), Greig, Judy (author), Mascarenhas, Mariola (author), Sivaramalingam, Bhairavi (author), Pham, Mai (author), and Papadopoulos, Andrew (author)
Format:
Journal article
Publication Date:
2015
Published:
International
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 153 Document Number: D06782
Agricultural Economics (Amsterdam, Netherlands), This paper tests for the influence of advertising on the inter-product distribution of consumer demand for non-durable goods and services in the UK, 1963–1996. The long-run demand for seven categories of non-durable products is modelled through an advertising-augmented version of the almost ideal demand system (AIDS), which is incorporated into an error-correction model to allow for short-run dynamic adjustments to long-run equilibrium positions. Model estimates confirm that the restrictions of price homogeneity and symmetry appear to be consistent with the data, yield measures of the various types of demand elasticity that are in general plausible, confirm the strong influence of prices on the allocation of consumer expenditure, but find little evidence to support the hypothesis that advertising has the power to effect marked changes in the inter-product pattern of consumer demand in the UK.
This study examines the roles of cholesterol information and advertising in explaining consumption trends for fats and oils, focusing on butter. Results suggest increased consumer awareness of the health effects of blood cholesterol has contributed to the secular decline in butter consumption in Canada. Although consumers' responses to negative information appear to outweigh their responses to positive information, the industry advertising campaign launched in 1978 by the Dairy Bureau of Canada has had a positive effect on butter demand.
