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A MULTIVARIATE PROBIT ANALYSIS OF ADVERTISING AWARENESS ON MILK USE
Authors:Stanley R Thompson  Doyle A Eiler
Institution:Graduate Research Assistant, Department of Agricultural Economics, Cornell University.;Assistant Professor of Marketing, Department of Agricultural Economics, Cornell University.
Abstract:In this study an attempt was made to determine and evaluate the factors affecting an individua?s probability of milk use in terms of a multivariate probit model. Cross-sectional survey data obtained through telephone interviews of individuals in three New York State Markets were used in the analysis. Various economic, demographic and socio-economic variables were hypothesized as being influential in determining an individual's likelihood of using fluid milk. Accordingly, the respondent's age was found to be highly influential in determining probability of milk use. Specifically, milk use probabilities were found to decrease as the age of the respondent increased. Moreover, the probability of milk use was found to be significantly greater for male respondents than for females. Also, if an individual was a consumer of beer or coffee, his probability of milk use was significantly reduced. Milk use probabilities were also reduced if the respondent was a consumer of soft drinks; however, they increased if he was a consumer of fruit juices or drinks. The level of household income was not found to be significant in affecting the respondent's probability of milk use. In general, if an individual could recognize the milk promotion theme and identify it with milk, his likelihood of milk use was greater than for his peer who was unaware of the promotion theme.
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