Measuring and Testing Advertising-Induced Rotation in the Demand Curve
| dc.creator | Zheng, Yuqing | |
| dc.creator | Kinnucan, Henry W. | |
| dc.creator | Kaiser, Harry M. | |
| dc.date | 2017-04-01T16:41:57Z | |
| dc.date.accessioned | 2026-07-09T02:57:18Z | |
| dc.description | Advertising can rotate the demand curve if it changes the dispersion of consumers' valuations. We provide an elasticity form measure of the advertising-induced demand curve rotation in five demand models and test for its presence in the U.S. non-alcoholic beverage market. The AIDS model reveals that doubling advertising spending rotates the demand curves clockwise for milk, and coffee and tea with associated slope changes of 7.3% and 11.6%. Soft-drink advertising rotates its demand curve counterclockwise. Our policy suggestion is that milk and soft-drink firms might enhance profits by timing advertising to coincide with high- and low-price periods, respectively. | |
| dc.identifier | doi:10.22004/ag.econ.9938 | |
| dc.identifier | https://ageconsearch.umn.edu/record/9938/files/sp07zh02.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/9938 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/523614 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/9938 | |
| dc.title | Measuring and Testing Advertising-Induced Rotation in the Demand Curve | |
| dc.type | Text |