ARE LOWER-INCOME SHOPPERS AS PRICE SENSITIVE AS HIGHER-INCOME ONES?: A LOOK AT BREAKFAST CEREALS

Scanner data for breakfast cereals are used to estimate demand elasticities for six supermarket stores in two distinct socio-economic areas. Three stores are in low-income locations and three are in high-income locations. A time series cross-section model is estimated for five product categories across six cross sections over forty-two weeks. Results show lower-income shoppers to have more elastic demands for four of the five product categories: private label cold cereals, the top ten brands of cold cereals, all other brands of cold cereals, and hot cereals. Price is not statistically significant for a fifth product category, snack cereals.


Issue Date:
1994-02
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/26645
Published in:
Journal of Food Distribution Research, Volume 25, Number 1
Page range:
82-92
Total Pages:
11




 Record created 2017-04-01, last modified 2017-04-04

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