Economic impact of generic mango promotion programs on the demand for mangos in USA
Many commodity groups have developed and funded industry-wide programs to better inform potential buyers of their specific foods and to increase consumption. This is the case of the National Mango Board (NMB) in the USA who are trying to increase awareness and demand for mangos through three core programs, Marketing, Research, and Industry Relations. Using a consumer household purchasing database of nearly 75,000 observations from March 2008 through June 2013, two discrete choice models, Probit and Ordered Probit, were specified to measure the impact of the NMB programs on market penetration (MP) and market intensity (MI) among other demand factors (demographics, attitudes, behavior, seasons, preferences, information, competition, health, and so forth). Overall, mango promotions were highly successful in attracting new buyers (MP) to the market place; yet those programs had little impact on the number of mangos per buyer (MI). The average MP from 2008 to 2013 is about 6% with the NMB programs in place and close to 5% without the NMB programs, and the average MI has remained very close to 2.7 mangos with and without the programs. The return-on-investment from the NMBRSQUOs programs is estimated to be 10.81.
Ward, R.W., Ortega, L. and Watson, W. (2017). Economic impact of generic mango promotion programs on the demand for mangos in USA. Acta Hortic. 1183, 383-388
mango, promotion, consumer demand, market penetration, market intensity, return-on-investment