Effectiveness of Fluid Milk Advertising Since the Dairy and Tobacco Adjustment Act of 1983

Abstract

Abstract An econometric model pooling monthly cross‐sectional and time‐series data is estimated to measure the impact of national and regional generic fluid milk advertising. The estimated model shows that the effectiveness of advertising has increased since the implementation of the Dairy Adjustment Act. Gains in fluid milk sales attributed to milk advertising are estimated. Sales gains for both the pre‐ and post‐act periods are shown along with the gains associated with parameter changes in the post‐act periods. Marginal advertising responses are derived.

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