Gary F. Fairchild

Some observations on the impact of advertising on demand

This article examines the decay structure of advertising and the incorporation of advertising in systems of demand equations by scaling and translating methods. Under the assumption that a consumers purchase of an advertised product is directly related to his|her recall of a specific advertisement, the decay effect of advertising for everyday products is a monotonic decreasing function of time. In the scaling model, advertising has a tendency to be more effective when demand is price elastic (inelastic) given a quantity augmenting (diminishing) type scaling impact. In the translating model, the impact of advertising is related to the marginal propensity to consume.

Commodity and brand advertising in the us orange juice market

This article examines the impact of the Florida Department of Citrus orange juice brand advertising rebate program through which producers support brand advertising by private firms. The impact of brand and Florida commodity advertising on the demand for national brand and private label orange juice is also evaluated.

Exchange rates and foreign demand for US fresh grapefruit

The seemingly unrelated regression technique was used to study the relationships between exchange rates and foreign demand for US fresh grapefruit. Annual observations for the period from 1972 through 1986 were used in the analysis. Results demonstrate that (1) when studying export demand relationships, exchange rates play an important role and the deletion of exchange rates from the analysis may result in inaccurate parameter estimates; and (2) US fresh grapefruit has more than one export market, with different markets responding differently to price changes.

The impact of Florida's import advertising equalization tax on the Florida orange juice industry

This study found that the equalization tax has a positive effect on both price and quantity of orange juice sold. Elimination of the tax would likely lead to reduced orange juice demand and industry revenue. Elimination of the tax would not likely lead to a substantially improved competitive position given Brazils flexibility in pricing. Neither the Florida citrus industry nor the State of Florida would benefit from an elimination of the tax.

Analyzing Extension's Role in Macroeconomic Policy Education: Discussion

For the past fifteen years, prominent members of the agricultural economics profession have been noting the importance of macroeconomics to the agricultural economy. Moreover, we are a large profession which professes to be concerned about addressing and solving problems and providing information for decision makers in the agricultural sector. And yet, we collectively seem to be relatively uninvolved with macroeconomics, except of course to talk about it. So what is wrong with this picture? If macroeconomics really is so important to the agricultural sector, really does make a difference, and really is useful to firm and industry decision makers, then why the apparent gap between our words and our actions?