Effects of Fluid Milk Advertising in Taiwan

Transcription

1 Effects of Flud Mlk Advertsng n Tawan Jane Lu Hsu and Gary Shang-Mn Lu * ABSTRACT Ths study utlzed the cluster analyss to examne effectveness of flud mlk advertsng n Tawan. Consumers wth dfferent perceptons of advertsng were grouped nto three clusters. The hgh-percepton cluster conssted of larger percentage of women at ages 6 to 35, wth hgher household ncome, and lvng n smaller households. The low-percepton cluster conssted of more male, older people, wth lower household ncome, and lvng n larger households. Consumers who were more senstve to flud mlk advertsng tended to consume more flud mlk after percevng advertsng. Key words: Mlk advertsng, Consumer perceptons INTRODUCTION Consumpton of dary products n Tawan has gradually ncreased n the last decade. Due to ncreased ncome and nutrtonal concerns, consumers have conceptualzed mlk as an ordnary food. Dary products, especally flud mlk, used to be consdered only for very young chldren, elder people, or someone recoverng from llness. Now a lot of famles n Tawan purchase flud mlk regularly and use t to substtute soft drnks. In 989, the annual per capta consumpton of flud mlk was 7 klograms n Tawan. Ths amount has ncreased to 7 klograms n 998. Flud mlk products, ncludng fresh mlk, flavored mlk, and fermented mlk, are the most mportant dary products consumed n Tawan. Consumpton patterns of flud mlk products from 989 to 998 are shown n Fgure. Among flud mlk products, fresh mlk s the most favored. Snce 99, the annual per capta consumpton of flavored mlk has shown a decreasng trend, whle annual per capta consumpton of fresh mlk and fermented mlk have been ncreasng. * Jane Lu Hsu and Gary Shang-Mn Lu are assocate professor and research assstant, respectvely, n the Department of Agrcultural Marketng at Natonal Chung Hsng Unversty, Tachung, Tawan. Address correspondence to Dr. Jane L. Hsu. e-mal: jlu@dragon.nchu.edu.tw

2 Annual Per Capta Consum (klograms) 4 Fresh Mlk 0 8 Flavored Mlk 6 4 Fermented Mlk Year Fgure. Annual Per Capta Consumpton of Flud Mlk Products n Tawan, The annual per capta consumpton of flud mlk n Tawan s relatvely low, comparng t of most developed countres. Based on data publshed by the Foregn Agrcultural Servce, Unted States Department of Agrculture, annual per capta consumpton of flud mlk n 998 was 96 klograms n Unted States, 99 klograms n Canada, klograms n Denmark, 70 klograms n France, 70 klograms n Ireland, 8 klograms n Unted Kngdom, 0 klograms n Australa, and 6 klograms n New Zealand (Table). However, annual per capta consumpton of flud mlk n Tawan was about 7 klograms n 998, whch suggests a great potental to expand the market of flud mlk products.

3 Table. Annual Per Capta Consumpton of Flud Mlk n Selected Countres 994 (klograms) 995 (klograms) 996 (klograms) 997 (klograms) 998 (klograms) Canada Unted States Austra Denmark France Ireland Netherlands Sweden Unted Kngdom Australa / New Zealand / Mexco Brazl Chle Japan Tawan Source: Foregn Agrcultural Servce, U.S. Department of Agrculture / Year endng June 30 of the year showed. / Year endng May 3 of the year showed. Producton of raw mlk n Tawan was about 44 metrc tons n 987. Ths amount had ncreased more than twofold to 33 metrc tons n 997. However, the percentage of self-suffcency of raw mlk was about 0% n Tawan. Consumpton of dary products heavly depends upon mports. As shown n Table, the volume of dary product mports has been ncreasng and mantaned at about 45 thousand metrc tons per year, whle the value of dary product mports fluctuated wth exchange rates. Fgure shows the orgns of exportng dary products to Tawan n 998. New Zealand and Australa are the major exportng countres. 3

4 Table. Volume and Value of Dary Product Imports of Tawan Year Volume (metrc ton) Value ($,000 USD) ,9 49, ,560 58, ,67 54, ,48 79, ,474 98, ,46 97, , , ,37 377, ,563 39, ,37 336, ,59 379, , , , ,490 Source: Agrcultural Trade Statstcs, Tawan Ireland % Dansh 4% USA 7% Belgum 6% Others 6% New Zealand 37% France 8% Holland 7% Australa 3% Fgure. Orgns of Exportng Dary Products to Tawan n 998 Currently, there are twelve brands of fresh and flavored mlk product, and seven brands of yogurt drnks n Tawan. In order to ncrease consumpton of flud mlk, generc advertsng has been conducted by agrcultural admnstraton every wnter snce 989, and the dary ndustry also spends money on branded mlk advertsng. However, branded flud mlk 4

5 advertsng s appled much more often than generc advertsng n promoton. The money spent on branded mlk advertsng of fresh mlk was.6 mllon U.S. dollars n 988, whle that had ncreased to 5.5 mllon U.S. dollars n 995, grown.4 tmes over the perod wth the annual ncreasng rate of 0 percent. Advertsng s consdered the major marketng strategy to promote flud mlk consumpton n Tawan. However, lackng of research on consumer perceptons of flud mlk advertsng reduces effcency and effectveness of advertsng. In order to meet the gap of research, the objectve of ths study s to classfy consumers based on ther perceptons of flud mlk advertsng n Tawan. Demographc characterstcs are consdered, and brand preferences of classfed consumers are evaluated. RELATED RESEARCH Lenz, Kaser, and Chung (998) estmated the responsveness of flud mlk sales to advertsng n New York Cty, Albany, Syracuse, Rochester, and Buffalo markets. Flud mlk demand equatons for these fve markets were estmated wth monthly data for the perod from January 986 through June 995. The demand equatons ncluded explanatory varables of retal mlk prces, per capta weekly earnngs n the manufacturng sector, ndex of consumer fat concerns, competng beverage advertsng expendtures, generc mlk advertsng expendtures, trgonometrc seasonal varables, and annual ndcators. They concluded that generc mlk advertsng had postve and sgnfcant nfluences n each market. Spendng on generc mlk advertsng over the perod from 987 to 995 had been proftable for dary farmers. The weghted average rate of return for the fve markets was US$.84 for an addtonal dollar spent on generc mlk advertsng. Vande Kamp and Kaser (999) examned rreversblty n the advertsng-demand relaton n the short and long run to evaluate flud mlk advertsng responses n New York Cty, U.S. Advertsng was treated as a stock called goodwll and could be accumulated and decayed over tme. They found that an ncrease n advertsng goodwll had an mmedate postve mpact on demand; however, a decrease n goodwll would not sgnfcantly reduce demand n the current and next perod. Consumpton would gradually declne n the long-run to respond reducton n flud mlk advertsng. Kaser (997) estmated the effects of generc advertsng on dary markets at retalng, wholesalng, and farm levels n U.S. Quarterly data from 975 through 995 were utlzed n a dynamc model. Results ndcated that retal, wholesale, and farm markets of dary products were all nfluenced by generc dary advertsng. For every U.S. dollar nvested over the perod , farmers receved an average rate of return of US$3.40. Moreover, the return of 5

6 nvestment n advertsng was hgher n the most recent years, about twofold the average of prevous years. Capps and Schmtz (99) used the polynomal dstrbuted lag model to estmate the effects of televson and rado advertsng on flud mlk demand n Texas, U.S. Monthly data from January 980 to September 988 were used. The results showed that generc advertsng expendtures generated rghtward shfts n demand for flud mlk n Texas. He also concluded that televson advertsng generated responses whch worn off more quckly than rado advertsng. The long-run effect of rado advertsng s about.75 tmes greater than the long-run effect of televson advertsng. Suzuk and Kaser (997) examned whether the assumpton of perfect competton n the U.S. dary ndustry based the fndngs of economc mpacts of generc dary advertsng. Quarterly data from 975 through 995 were utlzed. Results from an mperfect competton model were compared wth results from a perfect competton model. They found that generc flud mlk advertsng had postve mpacts on flud and manufactured mlk markets n U.S. n terms of ncreasng producer prces and Class I volume. The dfferences n magntude of mpacts between the two models were small, ndcatng that the assumpton of perfect competton for U.S. dary markets was plausble. Watanabe, Suzuk, and Kaser (997) used the consumer data from a Japanese consumer survey conducted by Natonal Mlk Promoton Assocaton of Japan to examne consumer preferences toward mlk and other beverages. Quantfcaton Theory Type III technque was appled to quantfy preferences for mlk and other beverages of Japanese consumers. Cluster analyss was utlzed to dentfy demographc and socoeconomc characterstcs assocated wth degrees of preferences for mlk products. Results showed that men, mddle-aged, and consumers wth no calcum concerns preferred soda drnks and alcoholc beverages. Younger people, larger famles, and consumers wth calcum concerns consumed mlk more frequently. Jensen (995) measured the mpacts of usng nutrtonal nformaton and household socoeconomc characterstcs on market partcpaton and household consumpton of whole and low-fat mlk products n the southern states of U.S. Data from the Natonwde Food Consumpton Survey were used. Three models (Cragg Market Partcpaton, Tobt, and Complete Domnance) were appled. Nutrtonal nformaton from health professonals, packagng or labels, and meda sources were consdered. Results showed that usng nutrtonal nformaton affected market partcpaton, but had lmted effects on purchasng amount. Results also suggested promoton of mlk products on the bass of nutrtonal benefts through 6

7 health professonals and product packagng could be useful for the dary ndustry to ncrease market partcpaton of consumers. Venkateswaran and Knnucan (990) measured the campagns of generc flud mlk advertsng n Ontaro, Canada, usng dfferent functonal forms. The approprate functonal form for examnng responses of sales to advertsng was evaluated. Quarterly data from the frst quarter of 973 through the last quarter of 984 were used. Data of flud mlk consumpton, advertsng prces and expendtures, prces of orange juce, dsposable personal ncome, and average age of consumers were also ncluded n the analyss. Four functonal forms, double-log, sem-log, log-nverse, and nverse functon, were utlzed to examne the mlk demand. Results ndcated that the generc advertsng programs of flud mlk had sgnfcantly ncreased mlk consumpton. The nverse functonal form could properly nterpret the emprcal relatonshps between generc advertsng and mlk sales n Ontaro, Canada. Usng the nverse functonal form, profts brought by flud mlk advertsng expendtures ncreased.7 tmes. THEORETICAL MODEL In marketng strateges, segmentaton and targetng potental markets need to classfy ndvduals or households. The most commonly used technque for groupng ndvduals or households wth smlar characterstcs s the cluster analyss (Har et al., 99). The essental crteron needed for cluster analyss s to classfy expermental unts nto classes or groups, so that the unts wthn a class or group are smlar to one another whle unts n dstnct classes or groups are dfferent (Johnson, 998). Two basc methods can be used to search and defne clusters-herarchcal and nonherarchcal methods (Hand, 98). The herarchcal method separates unts nto dfferent groups n a nested sequence of clusterng. The major defect of herarchcal method s that subsequent steps can never repar mstakes made n earler steps (Kaufman and Rousseeuw, 990). The nonherarchcal method, referred to as the K-means clusterng method, s a popular practcal technque n cluster analyss (Aff and Clark, 990) and s appled to ths study. For a specfed number of clusters, K, the basc steps of clusterng procedures are:. Dvde the data nto K ntal clusters. The members of clusters may be specfed by the researchers or may be selected by an arbtrary procedure n computer programs.. Calculate the means or centrods of the K clusters. The cluster centrod s the average value of ponts contaned n the cluster on all of varables ncluded n the analyss. 3. For a gven pont, calculate ts dstance to each centrod. If the pont s closer to the centrod 7

8 of ts own cluster, leave the pont n that cluster. Otherwse, reassgn the pont to another nearest cluster. 4. Repeat step 3 for each pont. 5. Repeat steps, 3, and 4 untl no pont to be reassgned. The followng s to llustrate the K-means clusterng method usng mathematcal equatons. () Optmzaton crtera Optmzaton crtera can be defned as the followng equaton n matrx form: where T W T W B () xx c (x- x)(x- x) n xx (x x )(x x ) and B c n (x x)(x x) The notatons used n the optmzaton crtera are defned as: X X x n x n : the x x xx xx x,, x x n,, number of ponts n cluster x n, the grand mean n j j n cluster,, and T s nterpreted as the scatter matrx descrbng the overall devatons of the observaton ponts from the grand mean. W s the wthn-class scatter matrx, gvng the devatons of the observaton ponts from ther cluster means. B s a weghted sum, gvng the scatter of the cluster means to the grand mean. 8

9 () Mnmzaton of trace (W) Mnmzng trace (W) can reduce the devatons of ponts wthn clusters. Therefore, the smlarty of characterstcs represented by observaton ponts n each cluster can be enhanced. The equaton of trace (W) s defned as: tr W tr c xx c c xx xx (x - x )(x - x ) (x - x ) (x - x ) tr (x - x )(x - x ) () (3) Beale s F-Type Statstc Due to the possbltes of fndng dfferent numbers of clusters, Beale s F-type statstcs were desgned to help determne the actual number of clusters for a certan data set. Suppose frst clusterng result showng c clusters wth W scatter matrx, and second clusterng result showng c clusters wth W scatter matrx. W and W are the correspondng sums of squares of wthn cluster dstances computed from the cluster means, whle c s larger than c. If W and W are almost the same sze, then the clusterng result from fewer number clusters s as good as the result from larger number clusters. For smplcty, the clusterng of fewer number clusters s selected. If W s much smaller than W, then the frst clusterng result shows an mprovement over the second. Then, the clusterng of larger number clusters s selected. To test the dfferences of clusterng results statstcally, Beale (970) suggested the pseudo F-type statstc, whch s defned as: (W W ) (N - c) k F* W (N - c ) k (N - c ) k (3) where k k c c - p - p, and p number of varables 9

10 If F* s greater than the F crtcal value wth k N - c ) (N - c ) degrees of freedom ( k for the numerator and k N - c ) for the denomnator, then the frst clusterng wth larger ( number clusters over the second wth smaller number clusters s selected. DATA The data used n ths study were collected through n-person survey conducted n supermarkets n the metropoltan areas of Tape, Tachung, and Kaohsung n Tawan. These three ctes are the most populated and located n the northern, central, and southern part of the sland, respectvely. The survey was completed n summer, 999. In total, 0 vald samples were used n analyss, ncludng 35 of Tape, 34 of Tachung, and 4 of Kaohsung. The major dfference between supermarkets and tradtonal markets n Tawan s that supermarkets have potentals to attract customers from dstance. Tradtonal markets tend to provde foods and servces manly for neghborng resdents. Wth very lmted amount of dary products sold n tradtonal markets n Tawan, supermarkets are the proper places to conduct the survey. Demographc characterstcs of survey respondents and ts comparson wth the latest Census (997) of Tawan are lsted n Table 3. Compared to the populaton, female are more lkely to do grocery shoppng. Supermarket shoppers tend to be the ones wth larger household szes, less annual household ncome, and havng hgh school or college levels of educaton. The average age of the respondents was 3.7 years old, compared to the average age of 30.7 years old of the populaton. Table 3. Comparson of Demographc Characterstcs of Survey Respondents and the Census of Tawan Demographc Characterstcs Survey Respondents 999 Census, Tawan 997 Gender (female) 80% 5.3% Average Household Sze 3.94 persons 3.5 persons Average Age 3.7 years old 30.7 years old Annual Household Income US$36,000 US$40,3 Educatonal Level Junor Hgh School or Less 5.4% 5.7% Senor Hgh School 38.% 30.6% College 53.7% 6.0% Graduate School.7% 0.7% Three major dary products, fresh mlk, flavored mlk, and yogurt drnks, were selected to examne the consumer perceptons of flud mlk advertsng n Tawan. Respondents were 0

11 asked about the total amount of expendtures they would ncrease n purchasng fresh mlk, flavored mlk, and yogurt drnks after percevng mlk advertsng of each type on mass meda. Accordng to respondents responses, samples were clustered for wthn-group homogenety and between-group heterogenety usng nonherarchcal clusterng method. RESULTS Results from the K-means Methods The nonherarchcal clusterng analyss was conducted usng the FASTCLUS procedure n SAS usng the K-means methods. Two basc optons of the FASTCLUS procedure were utlzed to determne the number of clusters. One opton s to specfy the maxmum number of clusters. Anther s to estmate the sze of the clusters by specfyng the radus of clusters. Dfferent values of the K numbers and dfferent radus of clusters were evaluated. Usng the crtera of mnmzng trace (W) and Beale s F-Type hypothess, a three-cluster soluton was suggested to be optmal. Table 4 lsted the standardzed mean scores for each cluster. The frst cluster, labeled hgh-percepton group, ncludes approxmately 4 percent of the respondents. Indvduals n the hgh-percepton group were more easly nfluenced by advertsng to ncrease total consumpton of flud mlk products. The second cluster, labeled mddle-percepton group, ncludes approxmately 34 percent of the respondents. Indvduals n the mddle-percepton group would not have strong motvatons to ncrease flud mlk consumpton after percevng flud mlk advertsng. The thrd cluster, labeled low-percepton group, ncludes approxmately 53 percent of the respondents. Indvduals n the low-percepton group would be less senstve to flud mlk advertsng. Table 4 Cluster Delneaton and Standardzed Wthn-Cluster Means Cluster Hgh-Percepton Mddle-Percepton Low-Percepton Fresh Mlk Flavored Mlk Yogurt Drnks Percentage of Total Respondents 3.7% 33.6% 5.7% K=3 Trace (W)=8.86 Pesudo F Statstc=93.68

12 Classfyng Consumer Groups Dfferences n demographc factors of the three clusters are lsted n Table 5. Characterstcs of these three clusters may be useful for the dary ndustry n desgnng promoton strateges to target consumers and to effcently segment markets n Tawan. As shown n Table 5, the hgh-percepton and mddle-percepton groups had lower percentages of men, 9% and 3%, respectvely. Ths result ndcated that women were generally affected by flud mlk advertsng more easly than men were n Tawan. Educatonal levels dd not show sgnfcant dfferences among the three clusters. When comparng the age of shoppers, the hgh-percepton group had a hgh percentage (60%) of respondents at ages 6 to 35. The low-percepton group had lowest percentage (33%) of respondents n ths range of ages, but had the largest percentage (7%) of respondents at ages 36 to 45. Ths suggested that older people tended to be less senstve to flud mlk advertsng. Table 5 Demographc Characterstcs of Clusterng Results Demographc Hgh-Percepton Mddle-Percepton Low-Percepton Characterstcs (percentage) Gender Male Female Educatonal Level Hgh school or less College Graduate School Age of Shoppers 6 to to to older than Annual Household Income Less than US$4, US$4,000 to US$39, More than US$40, Average Household Sze (person) Income played an mportant role of consumers n percevng flud mlk advertsng. The hgh-percepton group had hgher annual household ncome than other two groups. The low-percepton group had more households (4%) havng annual ncome less than US$4,000. Income postvely affected perceptons of flud mlk advertsng. For the household sze, respondents from larger households tended to be less senstve to flud mlk advertsng. The hgh-percepton group conssted of respondents from smaller households

13 wth average of 3. persons, whle the respondents n the low-percepton group were from larger households wth the average of 4. persons. The average ncreasng amount spent on each flud mlk product after advertsng was perceved s shown n Table 6. The consumers n the hgh-percepton cluster would ncrease more than fve US dollars n fresh mlk and n yogurt drnks after percevng advertsng. The consumers n the mddle-percepton cluster would ncrease about two US dollars, whle the consumers n the low-percepton cluster would only ncrease about 0.3 US dollars n fresh mlk and yogurt drnks after seeng advertsng. The advertsng of flavored mlk was not as effectve as the advertsng of fresh mlk or flavored mlk. The ncreasng amount of flavored mlk was the lowest among three mlk products n each cluster. Table 6 The Average Increasng Expendtures on Flud Mlk Products After Percevng Flud Mlk Advertsng Hgh-Percepton Mddle-Percepton Low-Percepton (USD) Fresh Mlk Flavored Mlk Yogurt Drnks In Tawan, consumers have a tendency to ncrease flud mlk consumpton n summer as to substtute soft drnks. Prces of flud mlk products, especally fresh mlk, would ncrease about 0% n summer due to the seasonal expanson n demand. In ths research, respondents were asked f they would ncrease consumpton of fresh mlk, flavored mlk, and yogurt drnks n summer. Results ndcated, as shown n Table 7, that the majorty of respondents n the hgh-percepton group would ncrease consumpton of flud mlk products n summer. For the low-percepton group, about half of the respondents would ncrease flud mlk consumpton n summer. Ths suggested that consumers who were more senstve to flud mlk advertsng tended to consume more flud mlk n the hot weather. Table 7 The Percentages of Respondents to Increase Flud Mlk Consumpton n Summer Hgh-Percepton Mddle-Percepton Low-Percepton (percentage) Fresh Mlk Flavored Mlk Yogurt Drnks

14 Brands are nfluencng factors when consumers make ther purchasng decsons n Tawan. Respondents of the hgh-percepton group showed hgher brand preferences n choosng flud mlk products than respondents n the other two groups. As shown n Table 8, about 93% of respondents n the hgh-percepton group preferred well-known brands of fresh mlk and yogurt drnks. In the low-percepton groups, the brands of flud mlk products dd not seem to be that mportant to the consumers. About 39%, 44%, and 3% of respondents n the low-percepton group mentoned that they dd not care about the brands of fresh mlk, flavored mlk, and yogurt drnks, respectvely. Ths result revealed that consumers who were more senstve to flud mlk advertsng also had hgher preferences for well-known brands of flud mlk products. Table 8 The Percentages of Respondents to Choose Well-Known Brands of Flud Mlk Products Hgh-Percepton Mddle-Percepton Low-Percepton Yes No Yes No Yes No (percentage) Fresh Mlk Flavored Mlk Yogurt Drnks CONCLUSIONS Ths study examned the effectveness of flud mlk advertsng n Tawan usng cross-sectonal data. Nonherarchcal clusterng method was utlzed to group consumers nto three dfferent clusters. Consumers n the cluster of hgh-percepton of flud mlk advertsng were more lkely to be female, ages 6 to 35, havng hgher annual household ncome, and lvng n smaller households. The cluster of low-percepton of flud mlk advertsng conssted of more male, older people, havng lower annual household ncome, and lvng n larger households. Consumers who were more senstve to flud mlk advertsng would spend more on flud mlk products after percevng advertsng. Advertsements of fresh mlk and yogurt drnks were more effectve than advertsements of flavored mlk. Consumers who were senstve to flud mlk advertsng tended to ncrease more flud mlk consumpton n summer. About half of consumers wth low perceptons of flud mlk advertsng would not change ther flud mlk consumpton patterns n summer. Consumers n the cluster of hgh-percepton showed strong brand preferences. Well-known brands of flud mlk products dd not seem to attract consumers wth low perceptons of flud mlk advertsng as much as to consumers wth hgh perceptons of flud mlk advertsng. 4

15 Results of ths study suggested household ncome, household szes, ncreased flud mlk expendtures n response to advertsng, and brand preferences could be factors to segment consumers n Tawan for the dary ndustry. In order to make effcent and effectve flud mlk advertsng, the dary ndustry may want to mantan the customers n the hgh-percepton cluster and to ncrease the advertsng perceptons of customers n the mddle-percepton and low-percepton clusters. REFERENCE Aff, A. A. & Clark, V. (990) Computer-Aded Multvarate Analyss ( nd edton). New York, U.S.: Van Nostrand Renhold. Beale, E.M.L.(970) Note on Procedures for Varable Selecton n Multple Regresson, Technometrcs,, Capps, Jr.,O. & Schmtz, J.D. (99) Effect of Generc Advertsng on the Demand for Flud Mlk: The Case of the Texas Market Order, Southern Journal of Agrcultural Economcs, Councl of Agrculture, Agrcultural Trade Statstcs, Tawan. Foregn Agrcultural Servce, Unted States Department of Agrculture, Dary/toc.htm Har, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (99) Multvarate Data Analyss wth Readngs (3 rd edton). New York, U.S.: Macmllam Publshng Company. Hand, D. J. (98) Dscrmnaton And Classfcaton. Chchester, U.K.: John Wley & Sons Ltd. Jensen K. (995) Flud Mlk Purchase Patterns n the South: Effects of Use of Nutrton Informaton and Household Characterstcs, Journal of Agrcultural and Appled Economcs. 7(), Johnson, D.E. (998) Appled Multvarate Methods for Data Analyss, Calforna, U.S.: Brooks/Cole Publshng. Kaser, H.M. (997) Impact of Natonal Generc Dary Advertsng on Dary Markets, , Journal of Agrcultural and Appled Economcs, 9(), Kaufman, L. & Rousseeuw, P. J. (990) Fndng Groups In Data - An Introducton to Cluster Analyss. New York, U.S.: John Wley & Sons, Inc. Lenz, J., Kaser, H.M. & Chung,C. (998) Economc Analyss of Mlk Advertsng Impacts on Markets n New York State, Agrbusness, 4(), Suzuk, N. & Kaser, H.M. (997) Imperfect Competton Models and Commodty Promoton Evaluaton: The Case of U.S. Generc Mlk Advertsng, Journal of Agrcultural and Appled Economcs, 9(),

16 Vande Kamp, P.R. & Kaser, H.M. (999) Irreversblty n Advertsng-Demand Response Functons: An Applcaton To Mlk, Amercal Journal of Agrculture Economcs, 8, Venkateswaran, M. & Knnucan, H. W. (990) Evaluatng Flud Mlk Advertsng n Ontaro: The Importance of Functonal Form, Canadan Journal of Agrcultural Economcs, 38, Watanabe, Y., Suzuk, N. & Kaser, H.M. (997) Identfyng Consumer Characterstcs Assocated Wth Japanese Preferences Toward Mlk Products, Agrbusness, 3(4),

17 Annual Per Capta Consum (klograms) Fresh Mlk Fermented Mlk Flavored Mlk Year Fgure. Annual Per Capta Consumpton of Flud Mlk Products n Tawan,

18 Ireland % Dansh 4% USA 7% Belgum 6% Others 6% New Zealand 37% France 8% Holland 7% Australa 3% Fgure. Orgns of Exportng Dary Products to Tawan n 998 Correspondng author: Dr. Jane Lu Hsu Department of Agrcultural Marketng Room 08 Natonal Chung Hsng Unversty Tachung, 40 Tawan TEL: ABOUT THE AUTHORS Jane Lu Hsu s an assocate professor n the Department of Agrcultural Marketng, Natonal Chung Hsng Unversty, Tawan. She receved a Ph.D. n Agrcultural Economcs from Kansas State Unversty, US. Her research nterests nclude consumer behavor, demand analyss, and food safety. Current research projects nclude structural changes n meat demand, consumpton patterns of dfferent meat cuts, and locaton selectons of grocery shoppng n Tawan. Gary Shang-Mn Lu s a research assstant n the Department of Agrcultural Marketng, Natonal Chung Hsng Unversty, Tawan. Hs research nterests nclude food marketng and dstrbuton, advertsng, and prce analyses.

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