Dynamic effects of peanut butter brand advertising

摘要

Using error correction method (ECM), maximum likelihood estimates of long-run and short-run effects of brand advertising expenditures on the U.S. demand for peanut butter were estimated. Results indicated that there was a positive effect of brand advertising expenditures on the total market demand for peanut butter. Aggregate demand was more responsive to advertising in the long run than in the short run due to possible brand substitution by consumers in the short run. Moreover, demand was responsive to price only in the short run.