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Consumers in a box: A consumer report on cereal

Author

Listed:
  • Samuel Gejdenson

    (United States House of Representatives, Washington, DC 20515)

  • Charles Schumer

    (United States House of Representatives, Washington, DC 20515)

Abstract

A report was issued on March 7, 1995 which found that cereal industry prices have accelerated faster than other foods to high noncompetitive levels. The leading companies' differentiation strategy has constrained the growth of economical private label cereals. Furthermore, reliance on inefficient coupons and promotions do not provide real value to the vast majority of American consumers. We conclude that in a competitive cereal industry, one or more manufacturers would break from the pack, cease expensive product proliferation, and reduce prices. Price competitive companies could continue to make healthy profits by reducing excessive advertising and eliminating inefficient promotions, which total hundreds of millions of dollars each year. [EconLit cites: L100, L410, L660] © 1999 John Wiley & Sons, Inc.

Suggested Citation

  • Samuel Gejdenson & Charles Schumer, 1999. "Consumers in a box: A consumer report on cereal," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 207-218.
    • Handle: RePEc:wly:agribz:v:15:y:1999:i:2:p:207-218
    DOI: 10.1002/(SICI)1520-6297(199921)15:2<207::AID-AGR5>3.0.CO;2-O
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    Cited by:

    1. Derek Baker & Kenneth Baltzer & Anja Skadkær Møller, 2006. "Branding behavior in the Danish food industry," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 31-49.
    2. Baltzer, Kenneth & Baker, Derek & Moller, Anja S., 2005. "The Use of Brands in Food Marketing - Results from a Survey of Danish Food Industry Firms," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24658, European Association of Agricultural Economists.
    3. Paul M. Patterson & Timothy J. Burkink & Rozlyn S. Lipsey & Jason Lipsey & Richard W. Roth & Mary Kay Martin, 2003. "Targeting tourists with state branding programs," Agribusiness, John Wiley & Sons, Ltd., vol. 19(4), pages 525-538.
    4. Chidmi, Benaissa & Lopez, Rigoberto A. & Cotterill, Ronald W., 2009. "The Retail Service, The Market Power, and the Vertical Relationships in Breakfast Cereals Industry," 2009 Conference, August 16-22, 2009, Beijing, China 51770, International Association of Agricultural Economists.

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