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This paper examines several approaches to introduce advertising in systems of demand equations. Advertising is included in the Rotterdam model using an unrestricted specification and three restricted specifications - advertising affects demand alternatively through (1) marginal utilities as in...
Persistent link: https://www.econbiz.de/10005026720
Increased demand for an advertised product may increase price, which, in turn, may lead to a free rider problem where competitive imports increase and result in a smaller price increase than otherwise. A study of Florida Department of Citrus advertising for orange juice indicated that the free...
Persistent link: https://www.econbiz.de/10005026752
Demand relationships for two closely related products -- grapefruit juice and grapefruit-juice cocktail -- were estimated from grocery-store scanner data to analyze the contention that consumer confusion exists between the two products. Results suggest confusion may exist, with grapefruit-juice...
Persistent link: https://www.econbiz.de/10005026771
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This study examined the impacts of four promotional tactics—features, displays, features and display together, and temporary price reductions—in context of a conditional demand system for 12 beverages. The Rotterdam model with promotion effects specified through the...
Persistent link: https://www.econbiz.de/10008543671