IDEAS home Printed from https://ideas.repec.org/a/ags/jlofdr/162260.html
   My bibliography  Save this article

An Economic Analysis of Consumers' Purchasing Behavior for Breakfast Cereals

Author

Listed:
  • Jin, Yuanjing
  • Chen, Eugene Jones Joyce
  • Sam, Abdoul

Abstract

Consumer price sensitivity is an issue of concern for most food marketers. This study uses 2006-2007 supermarket scanner data to estimate the price sensitivity of four groups of shoppers: higher-income, moderate-income , lower-in­ come, and rural dwellers. Economic theory is used to hypothesize price sensitivity for three of these groups of shoppers. Higher-income shoppers are expected to show the highest level of price sensitivity for national brands and lower-in­ come shoppers are expected to show the lowest level of price sensitivity for these brands. Price sensitivity for rural dwellers is not hypothesized, but the level of income for these dwellers is between that of moderate- and lower-income shoppers. The results for national brands of cereals show own-price elasticities for moderate-income, lower-income, and rural shoppers to be larger (absolute value) than those for higher-income shoppers; these relationships do not hold for private label brands . Furthermore, private label brands are shown to be strong substitutes for national brands, but national brands are weak substitutes for private label brands.

Suggested Citation

  • Jin, Yuanjing & Chen, Eugene Jones Joyce & Sam, Abdoul, 2010. "An Economic Analysis of Consumers' Purchasing Behavior for Breakfast Cereals," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(1), pages 1-6, March.
  • Handle: RePEc:ags:jlofdr:162260
    DOI: 10.22004/ag.econ.162260
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/162260/files/JinChen.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jayakrishnan, S. & Rekha, D. Chikhalkar & Ranjan Chaudhuri, 2016. "Measuring factors determining private label purchase," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(2), pages 42-58, February.
    2. Rainer Olbrich & Michael Hundt & Hans Christian Jansen, 2016. "Proliferation of Private Labels in Food Retailing: A Literature Overview," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(6), pages 63-76, December.

    More about this item

    Keywords

    Community/Rural/Urban Development;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlofdr:162260. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/fdrssea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.