A double-hurdle approach to advertising: The case of cheese

Abstract

This article uses a double-hurdle model to examine the demand for cheese. Essentially, this approach argues that the effects of advertising and other factors on product demand should be judged in terms of their influence on two separate decisions: a decision to participate in the market for cheese and the decision concerning how much to purchase. We find that generic advertising for natural cheese has been successful in inducing people into the cheese market but that it does not influence those already buying cheese to increase their purchases.