Quantity versus quality effects of generic advertising: The case of Norwegian salmon
In this article, a two-equation sample selection model is used to estimate a household demand function for salmon incorporating domestic generic advertising. The two-equation estimation procedure, based on purchase and unit value equations, allows us to handle heavily censored panel data for salmon...
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Published in | Agribusiness (New York, N.Y.) Vol. 23; no. 1; pp. 85 - 100 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Hoboken
Wiley Subscription Services, Inc., A Wiley Company
2007
John Wiley & Sons, Ltd Wiley Periodicals Inc |
Series | Agribusiness |
Subjects | |
Online Access | Get full text |
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Summary: | In this article, a two-equation sample selection model is used to estimate a household demand function for salmon incorporating domestic generic advertising. The two-equation estimation procedure, based on purchase and unit value equations, allows us to handle heavily censored panel data for salmon purchases by Norwegian households and the quality effects simultaneously. Unit values of the aggregated salmon commodity calculated from the observed expenditures and quantities are hypothesized to represent the average quality of the purchased commodity. Advertising effects on both purchases and unit values are investigated. The model also allows us to separate the effects of conditional purchases and purchase probabilities. Results indicate that most (76%) of the advertising effect is through the change of nonpurchase occasions to purchase occasions, and that generic salmon advertising induces Norwegian households to spend more money on salmon. However, advertising causes households to select more expensive products rather than increasing their purchased quantities. |
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Bibliography: | http://dx.doi.org/10.1002/agr.20108 ark:/67375/WNG-XMCVPJRC-M ArticleID:AGR20108 istex:2CF2F288D088C165DAE308597AD81985895312B2 ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0742-4477 1520-6297 |
DOI: | 10.1002/agr.20108 |