Economic Effectiveness of Advertising Aquacultural Products:

An industry advertising program for catfish, financed by farmers' voluntary contributions on feed on $6.00 per ton, commenced April 1987. This study estimates the impacts of that program on consumers' perceptions of catfish, purchase frequency, and profitability. Results indicate the ad campaign in its first year increased consumers' perceptions of product attributes (flavor, fishy odor, and nutrition) and overall attitudes toward catfish 2-4%, and increased purchase frequencies for at home and restaurant consumption 11-12%. The increased consumer demand for catfish attributable to advertising was estimated to have generated between $0.72 and $11.04 million in additional farm income in 1988, a net return of between $0.48 and $7.46 per media dollar invested. Results highlight the free-rider problem associated with voluntary programs: the estimated benefits of the advertising compaign were enjoyed by all producers yet only a portion shared in the cost. The profitability of industry advertising coupled with the inability to withhold benefits from non-contributing members provide a rationale for replacing voluntary contributions with a mandatory program. The issue of the optimal level of industry advertising must await further research.