Advertising, Information, and Product Quality: The Case of Butter

This study examines the roles of cholesterol information and advertising in explaining consumption trends for fats and oils, focusing on butter. Results suggest increased consumer awareness of the health effects of blood cholesterol has contributed to the secular decline in butter consumption in Canada. Although consumers' responses to negative information appear to outweigh their responses to positive information, the industry advertising campaign launched in 1978 by the Dairy Bureau of Canada has had a positive effect on butter demand.