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Consumer cohorts and purchases of nonalcoholic beverages

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  • Geir Gustavsen
  • Kyrre Rickertsen

Abstract

Age, period and cohort (APC) variables are included in a demand system that is used to estimate Norwegian purchases of nonalcoholic beverages. To take account of censoring, a two-step method is used. In the first step, the probabilities of purchasing milk, carbonated soft drinks and other soft drinks are estimated by probit models. The APC variables are highly significant. Older cohorts have higher probabilities of purchasing milk and lower probabilities of purchasing carbonated soft drinks than younger cohorts. In the second step, the probability density functions and the cumulative density function are used to correct for censoring. In the corrected demand system, there are positive cohort and negative age effects for milk. These effects suggest that the replacement of older by younger cohorts, in an increasingly older population, will result in reduced per capita purchases of milk. For carbonated soft drinks, there are no cohort or negative age effects, while there are positive age but no cohort effects for other soft drinks. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Geir Gustavsen & Kyrre Rickertsen, 2014. "Consumer cohorts and purchases of nonalcoholic beverages," Empirical Economics, Springer, vol. 46(2), pages 427-449, March.
    • Handle: RePEc:spr:empeco:v:46:y:2014:i:2:p:427-449
    DOI: 10.1007/s00181-013-0688-3
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    Cited by:

    1. Rickertsen, K. & Gustavsen, G.W. & Nayga, R.M. & Dong, D., 2018. "Acculturation in Food Choices among U.S. Immigrants," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277041, International Association of Agricultural Economists.
    2. Ji Yong Lee & Yiwei Qian & Geir Wæhler Gustavsen & Rodolfo M. Nayga & Kyrre Rickertsen, 2020. "Effects of consumer cohorts and age on meat expenditures in the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 505-517, July.
    3. Kyureghian, Gayaneh & Soler, Louis-Georges, 2016. "Life Cycle Consumption of Food: Evidence from French Data," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236785, Agricultural and Applied Economics Association.
    4. Stefan Mann & Daria Loginova, 2023. "Distinguishing inter- and pangenerational food trends," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-18, December.
    5. Gustavsen, Geir Wæhler & Rickertsen, Kyrre, 2018. "Consumer cohorts and the demand for meat and dairy products," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276865, International European Forum on System Dynamics and Innovation in Food Networks.

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    More about this item

    Keywords

    Cohort effects; Demand system; Milk; Soft drinks; D12; J10; Q13;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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