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Abstract

Responses to a product placement study of five long-grain rice varieties in 192 Asian-American households in Houston, Texas were utilized to estimate a quality-adjusted price model for rice demand. Quantity-dependent demand functions were estimated using actual price, quality-adjusted price, and no price scenarios. Results indicate that, although price was statistically significant, it explained very little of the variation in the quantity of rice demanded; further, income was not significant in determining rice demand for Asian Americans. Their demand appears to be driven primarily by ethnic and cultural considerations and household characteristics. Implications for retail marketing are discussed.

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