Measuring the Effects of the 1998/99 Pan-European Salmon Marketing Campaign in Germany and France

Abstract

In July 1997 a trade agreement between Norway and the European Union went into effect. The agreement specifies an increase in the export levy on Norwegian salmon entering the EU from 0.75% to 3.00% ad valorem. The proceeds of the levy are to be used by the Norwegian Seafood Export Council in cooperation with the Scottish Salmon Board and the Irish Salmon Growers Association for generic advertising of atlantic salmon in the European markets, the so called Pan-European Salmon Marketing Campaign. Over the Agreement’s five-year life, an estimated $30 million is expected to be invested in salmon promotion in Europe. Despite the relatively large sums being spent on these and related programs, little is known about the effects of generic advertising on consumers purchase frequency. A purpose of this research is to contribute to the understanding of these effects by examining in detail the generic advertising of atlantic salmon in Germany and France in 1998/99. By using a recursive econometric model linking awareness of the advertising in the first stage to the level of at-home consumption of salmon in the final stage the economic impact of the Pan-European campaign is investigated