Generic advertising evaluation: Case studies for United States cotton and non-alcoholic beverages

The results of two case studies are presented in this dissertation. In the cotton study, the generic advertising and check-off programs are analyzed to evaluate the potential profitability of the current check-off program on cotton from the U.S. cotton producers' perspective. An EDM modeling technique is employed to describe the price effects of increased domestic promotion in the competitive U.S. cotton market. Both raw cotton and finished goods levels are modeled, and manmade and wool fiber products are included in the system. The valuable results obtained from the EDM model analysis are to obtain reduced forms of the full elasticities for all endogenous variables, and theoretical expressions for various optimal conditions. The textile fiber products demand system is estimated, and cotton and wool advertising effectiveness are examined. The estimation results indicate that cotton advertising expenditure has significant effects on demand for domestic cotton and wool fiber products, but no effects on demand for manmade fiber products. Wool advertising expenditure has significant effects on cotton demand, but no effects on demand for wool and manmade fiber products. The significant cross-advertising elasticities indicate that advertising spillover effects exist in the textile demand system.;The case study on non-alcoholic beverages focuses on the effectiveness of advertising and consumer taste on U.S. non-alcoholic beverage consumption. Two budget-stage Rotterdam models with consumer taste incorporated are estimated. Latent consumer taste is specified by the MIMIC (Multiple Indicator and Multiple Cause) approach. The results of this study support the Galbraithian hypothesis. The results also indicate that consumer taste, in addition to price, income, and advertising, has played a significant role in the dominant consumption patterns of U.S. non-alcoholic beverages. The reasons for the consumer taste effects are explained as due to consumer health concerns indicated by increasing patterns of cholesterol information index, convenience concerns indicated by increasing patterns of the proportion of working women in the whole population, and demographic factors indicated by the decreasing patterns of the proportion of U.S. children under five years of age.