Journal of International Food & Agribusiness Marketing
Abstract:A dynamic gradually switching Almost Ideal Demand System (AIDS) model was developed and estimated to assess the effectiveness of non-price export promotions for U.S. poultry meat products in six major international markets. Results suggest that about 75% of the effect of promotion occurs after the first year. The marginal rates of return on investment from non-price promotion of U.S. poultry products in Singapore and the rest of the world are estimated to be $5.76 and $16.06, respectively, for the short run, and $30.39 and $61.93, respectively, for the long run. The study suggests that the export market of Japan for U.S. poultry meat products may have reached maturity as indicated by very small marginal rates of return.