Estimating Asymmetric Advertising Response: An Application to U.S. Nonalcoholic Beverage Demand
2008 ◽
Vol 40
(3)
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pp. 837-849
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Keyword(s):
We propose a regime-switching model that allows demand to respond asymmetrically to upward and downward advertising changes. With the introduction of a smooth transition function, the model features smooth rather than abrupt parameter changes between regimes. We apply the model to nonalcoholic beverage data in the United States for 1974 through 2005 to investigate asymmetric advertising response. Results indicate that a decrease in milk advertising had a more profound impact on milk demand than an increase did. An increase in milk advertising had no impact on milk demand, but a decrease could have an own-advertising elasticity up to 0.049.
2010 ◽
Vol 42
(2)
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pp. 367-382
Keyword(s):
2012 ◽
Vol 4
(1)
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pp. 52-68
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Keyword(s):
Keyword(s):
2006 ◽
Vol 23
(4)
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pp. 569-578
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Pricing Chinese warrants using artificial neural networks coupled with Markov regime switching model
2011 ◽
Vol 2
(4)
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pp. 314