Evaluating Branded Advertising of Fluid Milk Products in Taiwan

Abstract

This study utilized the LA/AIDS model to estimate the effects of branded fluid milk advertising that appeared on different media in Taiwan. Television advertising of branded milk products significantly increased consumption of each type of the milk products. Branded milk advertisements appearing in newspapers/magazines were not found to be effective. Compared to price and expenditure elasticities, the advertising elasticities were relatively small. Therefore, pricing strategies may be more effective than advertising in increasing sale volumes of fluid milk products.