scholarly journals Demand elasticities and price-cost margin ratios for grocery products in different socioeconomic groups

2012 ◽  
Vol 52 (No. 5) ◽  
pp. 225-235 ◽  
Author(s):  
C. Akbay ◽  
E. Jones
Keyword(s):  
Ice Cream ◽  
Private Label ◽  
Demand System ◽  
Almost Ideal Demand System ◽  
Lower Income ◽  
Average Price ◽  
Scanner Data ◽  
Socioeconomic Groups ◽  
Demand Elasticities ◽  
Grocery Products

In this paper, the demand elasticities and the size of price cost margin (PCM) ratios were investigated for private and national branded products using scanner data from a large supermarket chain in Ohio, USA. Demand elasticities and PCM ratios were measured for 32 national branded and 14 private label products for 9 food categories by using Almost Ideal Demand System. According to the results, lower-income shoppers were more prices sensitive than higher-income shoppers and the average price elasticities were ranged between –1.96 (Snacks) and –3.33 (ice-cream). According to the results, non-collusive case gave smaller PCM than the Bertrand case and the average PCM ratios ranged from 27% for ice cream to 54% for chips. 

scholarly journals Impact of Private Labels and Information Campaigns on Organic and Fair Trade Food Demand

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Douadia Bougherara ◽  
Carole Ropars-Collet ◽  
Jude Saint-Gilles
Keyword(s):  
Fair Trade ◽  
Private Label ◽  
Demand System ◽  
Demand Systems ◽  
Scanner Data ◽  
National Brand ◽  
Information Campaigns ◽  
Fair Trade Coffee ◽  
Systems Models ◽  
The Impact

AbstractWe use two Almost Ideal Demand Systems models on scanner data to analyze the demand for two food products (milk and coffee). Each demand system is composed of four products varying in the presence of an ecolabel (with or without) and the brand (national brand vs. private label). First, we aim to compare the demand for PL and NB ecolabeled products. While PLs are brands owned and controlled by retailers and specific to each retailer, NBs are owned and controlled by manufacturers and can be offered by several retailers. Second, we aim to assess the impact of information campaigns designed to raise awareness and knowledge of ecolabels. We find that demand is more elastic for ecolabeled goods as in the literature but we find this result only for NB goods (milk and coffee) and not for PL goods. We also find substitutability between ecolabeled and conventional goods as in the literature but only within the NB goods (milk only) and within the PL goods (milk and coffee). We also find complementarity between NB conventional and PL ecolabeled goods (milk and coffee). Finally, we find that information campaigns increase the predicted expenditure shares of PL organic milk by 33% and of NB fair trade coffee by 50%. But these effects are non-lasting.

scholarly journals Examining Demand Elasticities in the U.S. Differentiated Yogurt Market

2019 ◽  
Vol 6 (6) ◽  
pp. 69
Author(s):  
Rezgar Mohammed ◽  
Olga Murova
Keyword(s):  
Demand System ◽  
Almost Ideal Demand System ◽  
College Degree ◽  
Elastic Demand ◽  
Private Labels ◽  
Household Characteristics ◽  
Demand Elasticities ◽  
Consumer Choices ◽  
The U.S

This article applies the Quadratic Almost Ideal Demand system (QUAIDS) model to households’ weekly purchases of yogurt augmented with household characteristics to analyze consumer choices and estimate demand elasticities in the U.S. differentiated yogurt market after the introduction of Chobani brand in 2005. Results show that households with a college degree are more likely to purchase Chobani and Dannon brands rather than Yoplait and private labels. Except for Dannon, demand is price elastic, while the new brand of Chobani has a higher elastic demand compared to the Yoplait brand. Branded yogurts are expenditure elastic with the highest magnitude for Chobani among brands.

scholarly journals Going healthy: how product characteristics influence the sales impact of front-of-pack health symbols

2021 ◽  
Author(s):  
Stijn Maesen ◽  
Lien Lamey ◽  
Anne ter Braak ◽  
Léon Jansen
Keyword(s):  
Private Label ◽  
Scanner Data ◽  
Product Characteristics ◽  
Process Information ◽  
Lay Beliefs ◽  
Product Sales ◽  
Grocery Products ◽  
Private Label Products

AbstractManufacturers increasingly adopt health symbols, which translate overall product healthiness into a single symbol, to communicate about the overall healthiness of their grocery products. This study examines how the performance implications of adding a front-of-pack health symbol to a product vary across products. We study the sales impact of a government-supported health symbol program in 29 packaged categories, using over four years of scanner data. The results indicate that health symbols are most impactful when they positively disconfirm pre-existing beliefs that a product is not among the healthiest products within the category. More specifically, we find that health symbols are more effective for (i) products with a front-of-pack taste claim, (ii) lower priced products, and (iii) private label products. Furthermore, these results are more pronounced in healthier categories than in unhealthier categories. Our findings imply that health symbols can help overcome lay beliefs among consumers regarding a product’s overall healthiness. As such, adding a health symbol provides easy-to-process information about product healthiness for the consumer and can increase product sales for the manufacturer.

An Almost Ideal Demand System Analysis of Fresh Fish in Semarang, Indonesia

1994 ◽  
Vol 6 (3) ◽  
pp. 19-28 ◽  
Author(s):  
Nik Mustapha R. Abdullah ◽  
Roslan A. Ghaffar ◽  
Dwisetia Poerwono
Keyword(s):  
System Analysis ◽  
Demand System ◽  
Almost Ideal Demand System ◽  
Fresh Fish

scholarly journals Meat Demand in South Korea: An Application of the Restricted Source-Differentiated Almost Ideal Demand System Model

2007 ◽  
Vol 39 (1) ◽  
pp. 47-60 ◽  
Author(s):  
Shida Rastegari Henneberry ◽  
Seong-huyk Hwang
Keyword(s):  
United States ◽  
South Korea ◽  
The United States ◽  
System Model ◽  
Demand System ◽  
Almost Ideal Demand System ◽  
The South ◽  
Meat Demand ◽  
South Korean ◽  
Meat Market

The first difference version of the restricted source-differentiated almost ideal demand system is used to estimate South Korean meat demand. The results of this study indicate that the United States has the most to gain from an increase in the size of the South Korean imported meat market in terms of its beef exports, while South Korea has the most to gain from this expansion in the pork market. Moreover, the results indicate that the United States has a competitive advantage to Australia in the South Korean beef market. Results of this study have implications for U.S. meat exports in this ever-changing policy environment.

scholarly journals Analysis of Import Demand for Wooden Beds in the U.S.

2010 ◽  
Vol 42 (4) ◽  
pp. 643-658 ◽  
Author(s):  
Yang Wan ◽  
Changyou Sun ◽  
Donald L. Grebner
Keyword(s):  
Trade Diversion ◽  
Import Demand ◽  
Demand System ◽  
Almost Ideal Demand System ◽  
Industrialized Countries ◽  
Depression Effect ◽  
Trade Pattern ◽  
Newly Industrialized Countries ◽  
Antidumping Duties ◽  
The U.S

The market of wooden beds in the U.S. has been flooded with imports from China and Vietnam in recent years. Static and dynamic Almost Ideal Demand System models are used to assess the import demand for wooden beds from the top seven supplying countries. The analyses reveal that the antidumping investigation on China has some temporary trade depression effect on China, but trade diversion occurs to Vietnam, Indonesia, Canada, and Brazil. The formal implementation of antidumping duties since 2005 has not shown any significant effect on the trade pattern. U.S. consumers spend more on beds from newly industrialized countries and there are moderate degrees of substitution among wooden beds from most countries.

scholarly journals ANALISIS POLA KONSUMSI DAN MODEL PERMINTAAN IKAN MENURUT KARAKTERISTIK RUMAH TANGGA DI INDONESIA

2018 ◽  
Vol 13 (1) ◽  
pp. 73 ◽  
Author(s):  
Freshty Yulia Arthatiani ◽  
Nunung Kusnadi ◽  
Harianto Harianto
Keyword(s):  
Fish Consumption ◽  
Income Elasticity ◽  
Fish Distribution ◽  
Consumption Patterns ◽  
Demand System ◽  
Coefficient Of Determination ◽  
Almost Ideal Demand System ◽  
Demand Model ◽  
Demand Models ◽  
The Government

ABSTRAKTujuan penelitian ini adalah untuk mendeskripsikan pola konsumsi ikan di Indonesia dan mengidentifikasi faktor-faktor yang mempengaruhi permintaan ikan menurut karakteristik rumah tangga di Indonesia. Penelitian ini menggunakan data SUSENAS yang dilaporkan oleh Badan Pusat Statistik pada bulan Maret 2016. Pola konsumsi ikan dianalisis menggunakan statistik deskriptif dan model permintaan ikan dianalisis dengan menggunakan pendekatan model Linnear Approximation Almost Ideal Demand System (LA/AIDS). Hasil riset menunjukkan bahwa pola konsumsi rumah tangga di Indonesia dikelompokkan menjadi konsumsi ikan air laut segar sebesar 22.10 kg/kapita/tahun, ikan air tawar/payau segar sebesar 16.75 kg/kapita/tahun, udang segar sebesar 9.58 kg/kapita/tahun dan ikan olahan sebesar 4.22 kg/kapita/tahun. Dugaan model permintaan memberikan hasil cukup baik dengan 82.15% dari semua peubah berpengaruh signifikan terhadap fungsi permintaan kelompok ikan dan koefisien determinasi sebesar 27.06%. Nilai elastisitas pendapatan mengindikasikan bahwa seluruh kelompok ikan merupakan barang normal dan ikan olahan cenderung inelastis, sedangkan dari nilai elastisitas harga menunjukkan tanda negatif yang sesuai dengan teori ekonomi. Nilai elastisitas silang antar kelompok ikan menunjukkan hubungan yang bervariasi antar kelompok. Implikasi kebijakan yang dapat disarankan untuk meningkatkan konsumsi ikan segar adalah dengan peningkatan ketersediaan ikan melalui kebijakan peningkatan produksi dan peningkatan efektifitas distribusi ikan. Kebijakan promosi dan edukasi masih diperlukan untuk meningkatkan konsumsi ikan olahan karena sifatnya yang inelastis  terhadap perubahan harga dan pendapatan.Title: Analysis of Fish Consumption Patterns and Fish Demand Model Based on Household’s Characteristics in IndonesiaABSTRACTThis study aims to describe the pattern of fish consumption in Indonesia and to identify factors affecting household’s fish demand in Indonesia as well as estimating the elasticities of income and price. The data analyzed were mainly obtained from the SUSENAS Database-a nation social economy survey  conduct by the Indonesian Bureau of Statistic (BPS- during march 2016. Fish consumption patterns were analyzed using descriptive statistical analysis, while fish demand models were analyzed by Linnear Approximation Almost Ideal Demand System (LA/AIDS). Research shows that household consumption patterns in Indonesia are grouped into consumption of marine fish at 22.10 kg / capita / year, freshwater/brackish fish at 16.75 kg / capita / year, fresh shrimp at 9.58 kg / capita / year and processed fish amounted to 4.22 kg / capita / year. The estimation of the demand model gives quite good results with82,15% of all variables have a significant effect on the demand function of fish groups and the coefficient of determination is 27.06%. The value of income elasticity showed that all fish groups are normal goods and were negatively related to prices. The cross elasticities showed variation relationship between fish groups. With such result, in order for the government to be able to push the fish consumption level furtherwould require an increasing fish availbility through policies to increase production and effectiveness of fish distribution for fresh fish. Meanwhile education and promotion policies are necessary to increase consumption of processed fish because of their inelastic demand for changes in prices and income.

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