Revisiting Australian Pork Sales Response to Advertising 1985 - 1997

The pig meat market in Australia is characterized by generic (fresh pork, bacon etc.) advertising. These advertising expenditures are funded from collective levies from pig producers. At the same time, there are extensive brand advertising activities in the pig market. So far, there have been several studies done on the effectiveness of generic pork advertising in Australia up to 1988. However, the previous studies only looked at generic advertising and didn’t account for other media information as brand advertising effects on pork consumption. As well, the previous studies are contradictory about the effects of generic pork advertising. In this study the economic relationships in the consumption of pig meat are examined and the effectiveness of the advertising programs from 1988 to 1997 is evaluated. The two-stage demand system used in this study is made up of a single equation determining Australian aggregate expenditure on meat and an expenditure share system derived from a translog indirect utility function for four meats: pork, ham, bacon and other products. Own generic, brand and cross commodity effects of advertising are included in the analysis