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Household Grocery Budgets—An Empirical Examination of Allocation Changes Due to Household Demographics

Author

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  • D’Souza Giles

    (The University of Alabama, CC&BA, 162 Alston Hall, Box 870225, Tuscaloosa, AL35487-0225, USA)

  • Tariq Ayesha

    (Troy University, Troy Campus, Troy, AL36082, USA)

  • Allaway Arthur

    (The University of Alabama, CC&BA, 169 Alston Hall, Box 870225, Tuscaloosa, AL35487-0225, USA)

Abstract

The authors empirically examine changes in household grocery budget allocation using IRI panel data for 2001, which track more than 4,000 panel households’ specific purchases of 31 product categories across supermarkets and drug stores, while recording total purchases for all other categories. They then use an almost ideal demand system (AIDS) model to measure the impact of household demographics on grocery budget allocation over the 31 product categories. The household demographic variables used include marital status, presence of children including small children, occupation, household size, age, and other demographics, while also using grocery-specific variables—total grocery spending, prices, and total grocery shopping frequency. They find household demographics especially occupation and family variables, do affect grocery budget allocation, and that their effect is exercised much more through prices than through the total grocery budget.

Suggested Citation

  • D’Souza Giles & Tariq Ayesha & Allaway Arthur, 2017. "Household Grocery Budgets—An Empirical Examination of Allocation Changes Due to Household Demographics," Review of Marketing Science, De Gruyter, vol. 15(1), pages 19-43, June.
    • Handle: RePEc:bpj:revmkt:v:15:y:2017:i:1:p:19-43:n:2
    DOI: 10.1515/roms-2016-0037
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    References listed on IDEAS

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    1. Blanciforti, Laura Ann & Green, Richard, 1983. "The Almost Ideal Demand System: A Comparison and Application to Food Groups," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 35(3), pages 1-10, July.
    2. Sam K. Hui & Eric T. Bradlow & Peter S. Fader, 2009. "Testing Behavioral Hypotheses Using an Integrated Model of Grocery Store Shopping Path and Purchase Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(3), pages 478-493.
    3. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
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