우유의 상표광고와 기초광고 상응효과 분석

Profit Comparison between Brand and Generic Advertising :

This study investigates the effect of brand and generic advertising on the milk market in Korea in order to probe the possibility of voluntary involvement of dairy firms in generic advertising. As demand elasticity of fluid milk for the firms is more elastic, the optimal ratio of brand advertisement to a revenue decreases. This ratio further decreases when taking into account the response of a rivalry firm and generic advertising effects. We also provide the range for an elasticity of a generic advertising to brand advertising where milk companies would more willingly participate in generic advertising in order to maximize their profits.