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Promotion and Fast Food Demand: Where's the Beef?

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  • Richards, Timothy J.
  • Padilla, Luis

Abstract

Many believe that fast food promotion is a significant cause of the obesity epidemic in North America. Industry members argue that promotion only reallocates brand shares and does not increase overall demand. This study weighs into the debate by specifying and estimating a discrete/continuous model of fast food restaurant choice and food expenditure that explicitly accounts for both spatial and temporal determinants of demand. Estimates are obtained using a unique panel of Canadian fast food consumers. The results show that promotion primarily increases demand and has very little effect on restaurant market shares.

Suggested Citation

  • Richards, Timothy J. & Padilla, Luis, 2007. "Promotion and Fast Food Demand: Where's the Beef?," Consumer and Market Demand Network Papers 7711, University of Alberta, Department of Resource Economics and Environmental Sociology.
    • Handle: RePEc:ags:ualbnp:7711
    DOI: 10.22004/ag.econ.7711
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    File URL: https://ageconsearch.umn.edu/record/7711/files/pr070003.pdf
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    Cited by:

    1. Aneel Karnani & Brent McFerran & Anirban Mukhopadhyay, 2016. "The Obesity Crisis as Market Failure: An Analysis of Systemic Causes and Corrective Mechanisms," Journal of the Association for Consumer Research, University of Chicago Press, vol. 1(3), pages 445-470.
    2. Maynard, Leigh J. & Wang, Xin, 2009. "Context-Dependent BSE Impacts on Canadian Food-at-Home Beef Purchases," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48431, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Demand and Price Analysis; Marketing;

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