Using panel data to determine the effect of advertising on brand-level distilled spirits sales.
OBJECTIVE
The purpose of the present study is to determine the effect that brand-level advertising has on brand-level spirits demand.


METHODS
Using a panel data set consisting of 16 brands and 14 years of data, a fixed effects model of brand-level spirits demand was estimated.


RESULTS
It was found that own-brand advertising, income, rival-brand price, a time trend and brand loyalty all have a significant effect on brand-level spirits demand.


CONCLUSIONS
These results indicate that brand-level spirits advertising results only in brand switching and does not increase the overall size of the market.
Gius
M P
MP
Department of Economics, Quinnipiac College, Hamden, Connecticut 06518, USA.
D000329:Advertising / Q000191:economics / Q000706:statistics & numerical data*; D000434:Alcoholic Beverages / Q000191:economics / Q000706:statistics & numerical data*; D003365:Costs and Cost Analysis; D003627:Data Interpretation, Statistical; D006801:Humans; D014481:United States