Impact of Features and Display Ads on the Demand for Orange Juice: An Extension of the Rotterdam Demand Model

This study investigates the effect of advertising on the demand of various types of orange juice (OJ): frozen concentrated OJ (FCOJ), refrigerated not from concentrate (NFC), and refrigerated from concentrate (RECON) across the four U.S. regions: Northeast, North Central, South, and West. The Rotterdam model with an advertising specification is used to estimate the different consumption patterns of OJs. Results show that both feature and display ads have a positive impact on OJ demand but with differing results depending on OJ type and region. Display ads have a large impact on increasing OJ demand in the Northeast, South, and West regions, while feature ads have a strong impact on increasing NFC and RECON demand in the North Central region.