Demand Estimation In The Presence Of An Unobservable Product Attribute: The Case Of Mint Quality
AbstractThis article estimates the demand for mint-flavored gum products using grocery store sales data and accounting for consumers’ valuation of quality. Unobserved product attributes, such as flavor quality, are important elements to consider when estimating the demand for gum. The estimation results suggest that gum is an inelastic product. A positive relationship between willingness to pay and unobserved quality was identified, implying that gum industry should be able to command a premium for higher quality mint flavored products.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 123518.
Date of creation: 2012
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Quality Differentiation; Unobserved Product Attributes; Demand Estimation; Gum; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Industrial Organization;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-COM-2012-06-05 (Industrial Competition)
- NEP-MKT-2012-06-05 (Marketing)
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