A long-term view of the effectiveness of wool promotion schemes

The purpose of this article is to discuss the various phases that the promotion of wool passed through and to then analyse, econometrically, the effectiveness of this promotional activity. In particular, the promotional expenditure elasticity of demand and the own price elasticity of demand will be determined, the latter being important because promotional expenditure has been found to be more effective, ceteris paribus, as demand becomes less elastic. The econometric study is limited to the Australian and New Zealand markets and shows that an increase in promotional expenditure led to a slight increase in demand of 0.097%