Friday, July 29, 2016

Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry

He, Xi (University of Connecticut); Lopez, Rigoberto A. (University of Connecticut); Liu, Yizao (University of Connecticut) explore Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry.

ABSTRACT: This paper uses data collected from hypothetical and non-hypothetical choice-based conjoint survey instruments to estimate willingness to pay for distance-based local food products. The survey was administered to three different groups of respondents: members of a consumer buying club with local and grass-fed market experience, a random sample of Maryland residents, and shoppers at a non-specialty suburban Maryland grocery store. We find that both the random sample of Maryland residents and the grocery store shoppers are willing to pay a premium for local products, but view local and grass-fed production as substitutes. Conversely, members of the consumer buying club are willing to pay significantly less for local than their counterparts, but do not conflate local with other premium attributes, such as grass-fed production.

https://lawprofessors.typepad.com/antitrustprof_blog/2016/07/substitution-between-online-and-offline-advertising-evidence-from-the-carbonated-soft-drink-industry.html

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