Advertising and Alcohol Demand in the UK: Further Results

Johnson (1985) presents a system-wide analysis on the effects of advertising on the demand for beer, wine and spirits in the UK. However, his results are not consistent with other studies in the area. This paper shows that his results can be improved by using a different demand equation for the alcoholic beverages group. Furthermore, this paper also considers the analysis of treating advertising as a stock rather than a flow. This analysis reveals that advertising on beer, wine and spirits depreciates in consumers' minds fully within a year.     

An Econometric Study of the Demand for Various Types of Wines and Spirits in the United Kingdom

The purpose of this study is to investigate by econometric methods the influence of changes in prices, advertising and consumer tastes upon the pattern of demand for eight different types of wines and spirits during the 1970s in the United Kingdom.

Relative prices are found to play possibly an important role in the determination of wine products' market shares, but to have been insignificant in the spirits sector.

Relative levels of advertising may affect the pattern of demand between products in the way suggested by Galbraith, but the influence appears to be weak.

Product market shares may be invariant with respect to the size of the total spirits market, although this conclusion is held with least confidence for brandy which appears to grow at a relatively slow rate on average. However, wine product shares do fluctuate with the size of the total demand for wine products.

The disaggregated wine equations would appear to provide a potentially useful framework for detailed demand forecasting. However, the advantages of disaggregated analysis for this purpose are not as pronounced in the case of the spirits sector.     

Alternative Econometric Estimates of the Effect of Advertising on the Demand for Alcoholic Beverages in the United Kingdom

Using, for the first time, a system-wide approach to analysing the impact of brand advertising on generic demand and applying this new technique to the UK market for alcoholic beverages, the author finds that wine advertising has a significant impact but that spirits advertising has none.     

Lifestyle and Demographic Influences on Females' Consumption of Alcoholic Beverages

Using responses to a national survey, levels of consumption of beer, wine and spirits were related to life-style, age, education, and income. The findings suggest different sets of factors are linked to consumption levels for the various beverages, but that most life-style variables are of limited value in predicting higher levels of consumption. Implications to advertising are highlighted.     

Consumer sensitivity to changes in tax policy on consumption of alcohol

Marketers and economists have followed the consumption patterns of alcoholic beverages for many years. Public officials have studied the negative effects of consuming alcohol and have advocated a variety of measures to curtail consumption. Previous studies have also measured the price elasticity. This comparative study is based on a 40‐year analysis, and compares the consumption patterns for beer, spirits and wine in three Nordic countries. Although the cultural context of Denmark, Norway and Sweden are similar, nevertheless significant differences in the patterns of consumption and prices for alcoholic beverages have been evidenced overtime. A comparison of the per capita drinking patterns and the taxation effectiveness are presented. Even though the elasticities varied, the data indicate relative sensitivity to price changes and a decline in spirits consumption as well as switching effects to lower alcohol‐content beverages.     

Context effects of TV programme-induced interactivity and telepresence on advertising responses

This article provides an analysis of the relationship between annual advertising expenditures and sales, using a time series regression procedure, for beer, wine, and liquor sold in the United States from 1971 to 2012. Information from these four decades provides a comprehensive analysis of the relationships of numerous variables with aggregate alcohol category sales. Even though per capita alcohol consumption has not changed much throughout this period, alcohol advertising media expenditures for all alcohol beverages have increased almost 400% since 1971. This study has provided evidence of consumption changes across categories of alcohol beverages over the past 40-plus years with the preponderance of those changes significantly correlated to fluctuations in demography, taxation and income levels – not advertising. Despite other macro-level studies with consistent findings, the perception that advertising increases consumption exists. The findings here indicate that there is either no relationship or a weak one between advertising and aggregate category sales. Therefore, advertising restrictions or bans with the purpose of reducing consumption may not have the desired effect. Implications on policy decisions regarding advertising controls are addressed.     

All Things Being Equal

Abstract

While many consumers enjoy beer, wine and spirits and while many restaurant professionals believe they understand the differences among the three categories, myths and misconceptions abound within the field of beverage alcohol. By observing the production processes for each category it is evident that beer, wine and spirits are more alike than different and consumer preferences and foodservice recommendations should focus on taste, price, food selection and other subjective factors rather than misinformation as to essential nature. Physiological reactions to alcohol beverages are predicated more on the number of ethyl alcohol molecules ingested than on chosen beverage category. As production processes evidence, standard servings of 12 ounces of beer, 5 ounces of table wine and 1.5 ounces of 80 proof distilled spirits contain equivalent amounts of chemically identical alcohol. Restaurant personnel should observe drinking patterns of beer and wine consumers as closely as spirits drinkers for adverse consequences.     

Parental influence upon children's diet: the issue of category

Food and drink are distributed via corporate institutions in categories, such as ready meals or carbonated drinks. Within these categories, a minority of brands advertise, capitalizing upon the popularity of the categories. The issue of childhood obesity and health has led to a focus upon these advertised brands in terms of their being targeted at children, but nothing has been done about the categories they represent. Furthermore, parents have an influence upon their children's diet, as their expenditure accounts for the majority of their children's consumption. This paper accounts for UK children's perceptions of the effect of advertising and marketing of food and drink upon their parents, and concludes that the children see advertising as having very little influence. Rather, they see that their parents' involvement with certain categories have become, over time, their norm. Children do not see that the regulation of advertising of food and drink to them will have any significant effect upon their diet, as their parents will continue to consume from within the categories supplied by the retail sector, which in their view constitutes the most influential aspect of food and drink marketing. Given the international focus upon the advertising of food brands, this paper draws attention to other, potentially more influential issues.     

An Econometric Study of Advertising and Cigarette Demand in the United Kingdom

This article reports the results of an empirical investigation of the effect of total cigarette advertising on aggregate demand for cigarettes in the United Kingdom. The research is conducted within the framework of the Becker-Murphy model of rational addictive behaviour, using time series spanning the period 1963–1992. No evidence is found in this research to back up the view that aggregate cigarette advertising has the effect of expanding total market demand for cigarettes.     

Does advertising grow markets?

Many observers believe advertising increases market size (with the implication that fewer people would smoke or drink alcohol or buy cars if there were no advertising for those products), and that it works by creating desires. This paper examines the historical evidence and recent case histories of successful marketing campaigns from the UK’s IPA Effectiveness Awards. It turns out that very few advertisers have tried to increase the size of their market or claim to have done so. In the few cases that describe an increase in market size, we see consumers switching from one type of product to another, without increasing their total category consumption. No case claims to have created a new desire. The inference is that banning or restricting advertising may be an ineffective instrument of social policy.     

Naubauer,Robert G. Packaging,the Contemporary Media. New York: Van Nostrand Reinhold, 1973

Abstract

Additional advertising regulation is being proposed for both tobacco and alcoholic beverage products. The possible outcome of these proposed regulations is examined based on the effect that advertising regulation has had on tobacco consumption in the past.     

Responsibility and Brand Advertising in the Alcoholic Beverage Market: The Modeling of Normative Drinking Behavior

This review compares alcoholic beverage advertising, responsibility advertising, and media advocacy; considers their actual and desired impacts; describes and evaluates the controversy surrounding industry-sponsored responsibility campaigns; and identifies a number of issues that would benefit from additional research. Results indicate that alcoholic beverage advertising does not exert a material influence on total consumption or abuse, but models normative drinking behavior, and thus may actually inhibit alcohol misuse. Industry-sponsored responsibility efforts, like those sponsored by government and nonprofits, appear to affect desired changes, are perceived to be similar to government and nonprofit efforts, model desired drinking behaviors, and may be more effective with heavier drinkers.     

黑龙江省酒类生产流通消费及发展对策研究

黑龙江省是全国酒类生产与消费的主要省份之一,对全国酒类产业及酒类市场的发展具有重要作用。正确认识黑龙江省酒类生产、消费与流通状况,分析问题,总结经验,研究对策,对推动黑龙江省经济又好又快发展具有重大意义。     

Decomposing the effect of advertising: What happens in the retail channel?

The diverging interests of manufacturers and retailers famously give rise to the double marginalization problem but have consequences far beyond pricing. Advertising is another marketing instrument that is under the control of the manufacturer but its ultimate effect on consumer demand also depends on retailers’ pricing decisions. We decompose the effect of advertising in the channel and highlight an additional route through which advertising affects sales, namely via the changes in the retail price that a strategic retailer makes in response to changes in demand following manufacturer advertising. The total demand effect of advertising thus comprises the direct effects of advertising on market shares, and the indirect effects coming through adjustments that the retailer makes to the in-store prices of all the brands in a given product category in response to the shifted demand due to advertising. We match advertising data for four different categories (both food and non-food) to store-level scanner panel data, which also include information on wholesale prices. Controlling for wholesale prices, we establish in a reduced-form model that the retailer reacts to manufacturer advertising by changing retail prices instead of simply imposing a constant markup on the wholesale price. To further explore the role of the strategic response of the retailer in a systematic fashion and quantify the effects derived in the decomposition, we estimate a discrete-choice model of demand and determine the magnitude of the direct and indirect effects. We find that the indirect effect of advertising through retailer prices is about half the size of the direct effect, and thus substantively affects advertising effectiveness.     

我国餐饮广告营销策略研究

随着经济的发展,消费者的需求水平逐步提高,餐饮市场竞争激烈,众多餐饮经营者在狠抓餐饮产品质量的同时,也纷纷借助广告进行企业竞争,餐饮广告成为餐饮企业营销组合策略中的促销策略。目前我国餐饮业广告现状不容乐观,意识有待扭转,模式有待改进,前景发展广阔。     

“To love beer above all things”: An analysis of Brazilian craft beer subculture of consumption

In this article, we describe and analyze the Brazilian craft beer subculture of consumption. We observed that feelings play an important role inside this subculture and used a sociocultural approach to analyze it. Field notes from 9 months of fieldwork at beer festivals, craft beer meetings, and Collective Brassages and 40 interviews with consumers are used as data. “Drink less, drink better” is the subculture’s motto and shows commitment to enjoyment and responsibility as craft beer consumers reject mass-produced beer and antisocial behaviors usually associated with beer drinkers. We differentiated members of the craft beer subculture of consumption according to their commitment to subculture ethos, beer-specific knowledge, experience drinking and making beer, and emotional attachment to craft beer. Craft beer consumers experience different sentiments as their status inside the subculture increases and hard-core members show a religious fervor for the beer that is similar to consumer devotion.     

Television ad-skipping,consumption complementarities and the consumer demand for advertising

Endogenous consumption of advertising is common. Consumers choose to change channels to avoid TV ads, click away from paid online video ads, or discard direct mail without reading advertised details. As technological advances give firms improved abilities to target individual consumers through various media, it is becoming increasingly important for models to reflect the endogenous nature of ad consumption and to consider the implications that ad choice has for firms’ targeting strategies. With this motivation, we develop an empirical model of consumer demand for advertising in which demand for ads is jointly determined with demand for the advertised products. Building on Becker and Murphy (The Quarterly Journal of Economics, 108(4), 941–964 1993)’s ideas, the model treats advertising as a good over which consumers have utility and obtains demands as the outcome of a joint utility maximization problem. Leveraging new data that links household-level TV ad-viewing with product purchases, we provide empirical evidence that is consistent with the model: ad-skipping is found to be lower when a household has purchased more of the advertised brand, and purchases are higher when more ads have been watched recently, suggesting that advertising and product consumption are jointly determined. Fitting a structural model of joint demand to the data, we evaluate consumer welfare and advertiser profitability in advertising targeting counterfactuals motivated by an “addressable” future of TV. We find that targeting on the predicted ad-skip probability is an attractive strategy, as it indirectly selects consumers that value the product. Reflecting the positive view of advertising in the model, we also find that net consumer welfare may increase in several targeting scenarios. This occurs because under improved targeting, firms shift advertising to those who are likely to value it. At the same time, consumers that do not value the ads end up skipping them, mitigating possible welfare losses. Both forces are relevant to assessing advertising effects in a world with improved targeting and ad-skipping technology.     

酒类包装物押金税务会计处理和纳税筹划

酒类企业包装物收取押金是普遍现象,不同酒包装物押金征收增值税和消费税的规定是不相同的。本文分别以白酒、啤酒、黄酒和其他酒为分析对象,首先探讨收取押金的税务会计处理,其次分析包装物收取押金不退和连同产品一起销售相比的纳税筹划利益,得出酒类包装物收取押金可以获得延期纳税筹划利益。得出啤酒和黄酒包装物收取押金获得延期纳税筹划利益较大,白酒包装物收取押金会计处理方法不同影响纳税筹划利益等研究结论,为酒类企业经营管理者进行纳税筹划决策提供一些建设性意见。     

Beyond drinking: the role of wine in the life of the UK consumer

Since the development of wine sales via supermarkets in the UK in the 1970s wine consumption has more than doubled so now the UK is the largest wine import market (by value) in the world. Wine is now consumed by approximately 61% of the UK adult population on a regular basis. For many social wine consumption has become part of their lifestyle. Given the international importance of the UK wine market, plus the increasing incorporation of wine into regular consumption behaviour, it is remarkable how few academic studies have been undertaken into the consumption behaviour of moderate, social UK wine consumers. This paper aims to start developing that knowledge, thus adding to our understanding of consumer behaviour in general. The results show that consumers use wine in very sophisticated ways via purchasing, gifting and consumption. The findings also show that social interaction with wine varies significantly, dependant upon occasion and environment. Behaviour also varies if the purchase, as gift and/or for consumption, is perceived as a private or public activity. This paper places UK wine consumer behaviour within a social context, and is able to show that all consumers display a range of behaviours in relation to wine which are situation and occasion dependant.