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- All Subjects: Apples--Marketing
- Creators: Patterson, Paul Malcolm
ContributorsRichards, Timothy James (Author) / Gao, X. M. (Author) / Patterson, Paul Malcolm (Author) / Morrison School of Agribusiness and Resource Management (Publisher)
Created1998-06
Description
“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.