A Study on the Influences of Advertising on the Consumption Behavior for Fluid Milk: A Double-Hurdle Model Approach

The primary distinction between generic and brand advertising is in their contents of information, but the question of how and why advertisements induces tendency of consumption and actual purchase is usually unknown. In order to understand the characteristics of milk consumption from insight of decision behavior, this study intends to empirically examine the impacts of generic and brand advertising on the decision inference process for fresh milk consumption by using the Cragg\'s Double-hurdle model.

Empirical results shown that the influence of generic and brand advertising on consumers\' participation decision for fresh milk was about the same, while the quantity consumption decision was mainly affected by brand advertising. In addition, the two demographic factors, age and number of children in the family, had positive influences on actual quantity purchased.