The Effect of Advertising and In-Store Promotions on the Demand for Chocolate
International Journal of Economics and Finance
This paper analyzes the effect of TV advertising and in-store displays on the sales of chocolates. I examine which method is more effective in gaining customers and in increasing total sales. Also, I look at the evidence to see whether the lack of advertising by a firm will hurt the industry as a whole. In this essay, I use a nested logit model on scanner data obtained by the Zwick Center for Food and Resource Policy at the University of Connecticuts Department of Agricultural and Resource
... mics to examine the effect of TV advertising on chocolate sales. The results show that in-store displays and advertising both help increase the demand for chocolate. . I am deeply indebted to my advisor Prof. Richard N. Langlois and to my associate advisors Prof. Ronald Cotterill and Prof. Rui Huang for their guidance and helpful advice. I would also like to thank Xun Li, Adam Rabinowitz, Charles Rhodes, and Joshua Berning for helping me analyze the data and estimate the model. Lastly, I also would like to thank Boris Bravo-Ureta and Chen Zhu for their comments. Any errors are my own.