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Assessing key factors influencing orange juice demand in the current US market

Author

Listed:
  • Yan Heng
  • Ronald W. Ward
  • Lisa A. House
  • Marisa Zansler

Abstract

The US orange juice (OJ) industry has experienced dramatic changes and pressure from both the supply and demand side in the past decade. It is critical for the industry to understand and enhance consumer's demand to sustain the higher prices associated with decreased production and maintain demand for the point in time where production can recover. This study utilized both Nielsen scanner data and a unique consumer tracker database to explore the impact of key factors on OJ consumption to estimate the return on investment. The usage of two datasets and multiple methods increases the reliability of results. Our results identified several demand drivers including demographics, health conditions, promotion awareness, and consumer's positive perceptions. Moreover, this study implies that a larger positive impact can be obtained by focusing on the positive aspects over responding to negative news. Therefore, we suggest the industry enhance generic promotion and advertising awareness and develop marketing programs that emphasize the positive attributes and benefits of OJ.

Suggested Citation

  • Yan Heng & Ronald W. Ward & Lisa A. House & Marisa Zansler, 2019. "Assessing key factors influencing orange juice demand in the current US market," Agribusiness, John Wiley & Sons, Ltd., vol. 35(4), pages 501-515, October.
    • Handle: RePEc:wly:agribz:v:35:y:2019:i:4:p:501-515
    DOI: 10.1002/agr.21596
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    References listed on IDEAS

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    1. Palma, Marco A. & Ward, Ronald W., 2010. "Measuring Demand Factors Influencing Market Penetration and Buying Frequency for Flowers in the U.S," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(1), pages 1-18, February.
    2. Schmit, Todd M. & Dong, Diansheng & Chung, Chanjin & Kaiser, Harry M. & Gould, Brian W., 2002. "Identifying The Effects Of Generic Advertising On The Household Demand For Fluid Milk And Cheese: A Two-Step Panel Data Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-22, July.
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    1. Xuqi Chen & Yan Heng & Zhifeng Gao & Yuan Jiang, 2022. "Impacts of duo‐regional generic advertising of social media on consumer preference," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 21-44, January.

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