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Effects of Container Size on Overconsumption of Carbonated Soft Drinks

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  • Zheng, Xiaoyong
  • Zhen, Chen
  • Wohlgenant, Michael K.

Abstract

We take a structural approach to examine the effects of larger container size on consumption of carbonated soft drinks---using Nielsen Company's Homescan data on household purchases for the years 2004 through 2006. Our results show that by removing the price discount implicit in packages with larger container size, the average unit price the two households pay for CSD products increase and hence both households (both the low income and the high income) reduce their annual consumption of soft drinks by about 75%. This reduction is due to a combination of reduced number of purchases and switching to products with less number of bottles/cans.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6203.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6203

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Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

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  1. Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-68, June.
  2. Matthew Shum, 2004. "Does Advertising Overcome Brand Loyalty? Evidence from the Breakfast-Cereals Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(2), pages 241-272, 06.
  3. Dong, Diansheng & Kaiser, Harry M., 2003. "Coupon Redemption and Its Effect on Household Cheese Purchases," Research Bulletins 122111, Cornell University, Department of Applied Economics and Management.
  4. Jean-Pierre Dubé, 2004. "Multiple Discreteness and Product Differentiation: Demand for Carbonated Soft Drinks," Marketing Science, INFORMS, vol. 23(1), pages 66-81, September.
  5. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
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