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A Model Of Retail Outlet Selection For Beef

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  • Medina, Sara
  • Ward, Ronald W.

Abstract

Multinomial logit models were used to explain consumer outlet selection when buying beef, specifically roasts, steaks, ground beef, and other types of beef. Outlets were grouped into supermarkets, butchers, warehouses, supercenters, and others, and the probability of selecting each outlet type over a range of demographic and other variables was tested. The models were estimated from household data, with 198,682 observations used in the estimation. Empirical results showed that the type of beef purchased and the size of the purchase played an importance role in the choice of outlet. Furthermore, the increase in mobility seen when consumers buy larger unit cuts could not be fully explained by price discounting. Implications for the potential growth of each outlet types are discussed.

Suggested Citation

  • Medina, Sara & Ward, Ronald W., 1999. "A Model Of Retail Outlet Selection For Beef," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(2), pages 1-25.
    • Handle: RePEc:ags:ifaamr:34205
    DOI: 10.22004/ag.econ.34205
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    References listed on IDEAS

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    4. Theil, Henri, 1969. "A Multinomial Extension of the Linear Logit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(3), pages 251-259, October.
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    Cited by:

    1. Zhifeng Gao & Ted C. Schroeder, 2009. "Consumer responses to new food quality information: are some consumers more sensitive than others?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 339-346, May.
    2. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.
    3. Lusk, Jayson L. & Cevallos, Edgar, 2004. "Factors Influencing Demand for a Producer-Owned Beef Retail Outlet," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(1), pages 97-111, April.
    4. Rossini, Gustavo & Arancibia, Rodrigo García & Depetris Guiguet, Edith, 2014. "Argentine Beef Demand and Household Choices of Retail Channels," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 5(1), pages 1-10, June.
    5. Ronald W. Ward & Julian Briz & Isabel de Felipe, 2003. "Competing supplies of olive oil in the German market: An application of multinomial logit models," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 393-406.
    6. Gaynor, Joe & Jensen, Kimberly L. & Jaenicke, Edward C., 2002. "Retail Meat Managers' Profitability Expectations For Irradiated Red Meats," 2002 Annual meeting, July 28-31, Long Beach, CA 19793, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Ch. Jayasankara Prasad, 2010. "Effect of Consumer Demographic Attributes on Store Choice Behaviour in Food and Grocery Retailing - An Empirical Analysis," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 35(1), pages 35-58, February.
    8. Ward, Ronald W. & Ferrara, Oscar, 2005. "Measuring Brand Preferences Among U.S. Meat Consumers with Probit Models," 2005 Annual meeting, July 24-27, Providence, RI 19462, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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