The impact of generic advertising and the free rider problem: a look at the US orange juice market and imports

Article Abstract:

The purpose of advertising is to increase demand for the advertised product, that, in turn, may lead to an increase in price, resulting in a reduction of the initial price increase. This situation, called the free rider problem, has had a large impact on the orange juice (OJ) industry. A study of the impact of generic advertising for OJ indicates that free rider effects limit the impact of advertising on price. As the amounts of imports increase, the difference between the prices of domestic and imported products are reduced, in which case, consumers would prefer to buy imported products.

Fruit and Vegetable Canning, Frozen Fruit, Juice, and Vegetable Manufacturing, Canned fruits and vegetables, Frozen fruits and vegetables, Frozen Orange Juice, Canned Orange Juice, International trade, Canned juices, Juice industry, Orange juice

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Lag structures in commodity advertising research

Article Abstract:

An investigation of advertising lag is presented to evaluate the form of advertising decay structure. Results indicate that for frequently consumed items, the advertising decay structure may be a monotonic decreasing function. However, researchers are not in complete agreement regarding the advertising variables included in the regression analysis and the specification of the decay structure. This may produce a misspecified model, which is usually the case, when cumulative advertising effects are being studied.

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Allocation of shelf space: A case study of refrigerated juice products in grocery stores

Article Abstract:

A profit maximization model is constructed to determine the right allocation of store shelf space that will provide the highest profits. The variables include wholesale and retail price, total shelf space, product demand and other explanatory variables. The model's accuracy was tested by applying it to the sale of refrigerated juice products in US grocery stores. The results indicate the need for grocery owners to factor in demand and profit per unit in space allocations.

Grocery Stores, Supermarkets and Other Grocery (except Convenience) Stores, Research, Models, Retail industry, Retail trade, Grocery industry, Marketing, Consumer goods, Store fixtures

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