Arizona State and Local Government Documents Collection

Marketing research in consumer packaged goods shows that consumers’ brand choices, category choices, and purchase volumes are all affected by different factors and in different ways by pricepromotions
and advertising. Research also suggests that brand-loyalty, purchase rates, and inventory behavior are important determinants of category choice. These findings are likely to be true of apples as well.

The Fuji apple variety is relatively new in the U.S. As a new product, questions concern the relative impact of consumer learning by experience, by variety-specific promotion, or by generic apple promotion. A two-stage (LES/LAIDS) model incorporating both types of promotion is used to estimate the effect of generic and variety specific promotion, as well as consumer experience, on the demand for Fuji apples. Estimates show each to have a positive impact, and also show new or specialty apple varieties to be relatively price inelastic, but income elastic. Grower returns to promotion are calculated with an equilibrium displacement model of price changes and producer surplus. Changes in producer surplus provide a base-scenario benefit:cost ratio of 14.73.

A structural latent variable model of apple variety demand is used to analyze the effect of variety specific newspaper advertisement characteristics on variety attraction (preferences), and in turn on variety demand. The influence of advertisement size, the use of color and the Washington apple logo were analyzed. The estimated variety attraction variable is important in explaining demand. Model specifications which exclude this variable tend to understate demand elasticities. Advertisement size has a positive impact on Granny Smith, Fuji, and Gala sales. Red Delicious sales are positively influenced by color ads, but negatively affected by ads with the Washington apple logo.

“Commodity promotion” consists of many activities, each designed to contribute to a consumer’s product knowledge or influence tastes. However, both knowledge and tastes are unobservable, or latent, variables influencing demand. This paper specifies a dynamic structural model of fresh fruit demand that treats promotion and other socioeconomic variables as "causal" variables influencing these latent variables. Estimating this state-space model using a Kalman filter approach provides estimates of both the system parameters and a latent variable series. The results show that these latent effects contribute positively to apple and other fruit consumption, while reducing banana consumption.

The Arizona Department of Health Services completed this health consultation at the request of the Arizona Department of Environmental Quality. This consult evaluates whether soil vapors from volatile organic compounds in the subsurface near the Silver Creek Subdivision in Tucson, Arizona are present at levels that may cause adverse health effects.

From May 2005 to June 2005, the Arizona Department of Environmental Quality conducted a study, Potable Well Sampling Task 4.0, to determine if the chromium and chromium VI plume due to the discharge of the Pacific Gas and Electronic Topock Compressor Station has migrated under the Colorado River and impacted water supplies in Arizona. The ADEQ investigated the total chromium and hexavalent chromium (chromium VI) concentrations in (1) public water supply wells, (2) combined industrial and domestic water supply wells, and (3) private domestic water supply wells at Topock and Golden Shores, Arizona. The communities of Topock and Golden Shores have expressed their concerns regarding the findings. Thus, the ADEQ requested the Arizona Department of Health Services to evaluate the potential health effects of exposure to well water contaminated with chromium.

Many public programs promote diets rich in fruits and vegetables based on evidence on the derived health benefits. Sill, produce consumption in the U.S. lags behind other nations, even its most culturally similar neighbor–Canada. This study uses a structural latent variable model to test the role quality and health information play in explaining observed differences in produce consumption. The Alchian-Allen effect predicts that higher quality, higher absolute margin produce will be exported, suggesting that quality may be an important demand factor in importing nations such as Canada. The results show that dietary health information is significant in expanding demands. Quality also promotes fruit consumption in Canada.