| 초록 |
This study investigates asymmetry in demand response to advertising by introducing a demand model with a smooth transition function that allows demand to respond asymmetrically to increasing and decreasing advertising changes, as a case study of generic advertising on Korean pork. Considering the carry-over effect of advertising, the model combines the exponential distributed lag function. Asymmetry is found to exist in case of Korean pork. Particularly positive asymmetric advertising response exists, which indicates that an increase in pork advertising had a more profound impact on pork demand than a decrease did. The estimates of pork demand elasticities with repect to increases and decreases in advertising good will were 0.097 and -0.0156, respectively. Given the amount of total available advertising expenditures, a pulsing advertising policy is recommended with more frequent fluctuation in advertising expenditures on Korean pork in order to promote its consumption.
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