This study examines the relationship between generic advertising and perceived value for 100 percent orange juice using data from a survey on consumption, perceived value, advertising awareness, and other key measures. We investigate the relationships between consumption and perceived value and between generic advertising and perceived value and identify features of generic advertising of orange juice that have the greatest influence on consumers. Our analysis indicates that perceived value is strongly associated with increased consumption and is influenced by generic advertising. Generic advertising is most effective when consumers view the content of the ads as genuine and relevant.

A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.

An eight-equation partially-recursive econometric model is specified to indicate the effects of catfish advertising on product awareness, beliefs, attitude and consumption. Results indicate the ad campaign in its first year (i) increased consumers' awareness of farm-raised catfish 15 percent, (ii) improved consumers' perceptions of and attitude toward catfish 3 to 6 percent, and (iii) increased at-home and restaurant purchases of catfish 12 to 13 percent. The response to the ad campaign is broken down into an “attitude effect” and a “reminder effect” to determine the relative behavioral importance of the affective and cognitive components of the ad copy. Model simulations suggest primacy of the reminder effect, implying the factual content of the ads had less impact on behavior than the mere presence of the ads.

This analysis indicates that generic advertising expenditures, ceteris paribus, generated rightward shifts in demand for fluid milk in the Texas Market Order over the period January 1980 to September 1988. Generally, the results from this study are in agreement with previous research efforts which suggest that generic advertising can increase the demand for fluid milk. Importantly, in this analysis, the impacts of television and radio advertising have been effectively disentangled. Television advertising generates a response that wears off more quickly than radio advertising. Also, the long-run effect of radio advertising is about 1.75 times greater than the long-run effect of television advertising.

Annual seasonal advertising expenditure allocations were estimated for the national generic advertising programs for fluid milk and cheese with the use of price and advertising elasticities of demand that varied over time. Significant variation in optimal allocations existed both across products and over time, emphasizing the importance of obtaining accurate seasonal forecasts that incorporate changes in market conditions to plan future spending allocations. In the absence of such information, allocating annual budgets equally across quarters still produced positive producer welfare gains on average relative to historical spending that were not statistically different from those realized under the optimal spending strategy.

The impacts of generic dairy advertising on retail, wholesale, and farm dairy markets are estimated in this study at the national level. The results indicate that generic dairy advertising had a major impact on retail, wholesale, and farm markets for the dairy industry. The main conclusion of the study is that farmers are receiving a high return on their investment in generic dairy advertising, i.e., an average rate of return of $3.40 for every dollar invested over the period 1984–95. Moreover, the return on investment in advertising was higher in the most recent year, almost double the average for the previous 11 years.

With the passage of the Dairy and Tobacco Adjustment Act of 1983, dairy fanner investment in product research, nutrition education, advertising, and promotion in the United States increased from $60 million to $200 million annually. A key decision faced by boards managing these funds is how best to allocate available advertising funds among the various dairy products. In this paper an economic model is developed that shows the allocation of funds among products that would maximize sales in a given market. The model is applied to the New York City market with results suggesting that over the study period diverting funds from fluid milk to cheese advertising would have enhanced milk-equivalent sales in the market by as much as 1.17% or 8.21 million gallons annually. Alternatively, the model suggests that the same sales level could have been achieved with a different allocation of funds resulting in an estimated 14.6% savings in the amount spent advertising the two products.