Journal Article

Irreversibility in Advertising-Demand Response Functions: An Application to Milk

Philip R. Vande Kamp and Harry M. Kaiser

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 81, issue 2, pages 385-396
Published in print May 1999 | ISSN: 0002-9092
Published online May 1999 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244589
Irreversibility in Advertising-Demand Response Functions: An Application to Milk

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  • Household Behaviour and Family Economics
  • Marketing
  • Agricultural Economics

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A generalized methodology for estimating irreversible functions is developed. This approach, which accommodates short-term irreversibility and long-term reversibility, is an improvement over previous irreversibility studies that imposed both short- and long-term irreversibility. Using the proposed methodology, irreversibility in the demand response to fluid milk advertising in New York City is evaluated. Irreversibility is found to exist, and, in particular, consumers are found to react more rapidly to increases in advertising compared to decreases. This result may have important implications for optimal temporal advertising strategies.

Keywords: advertising; asymmetry; dairy; generic promotion; irreversible functions; New York City; D120; M370; Q110; Q130

Journal Article.  0 words. 

Subjects: Household Behaviour and Family Economics ; Marketing ; Agricultural Economics

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