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Effects of Container Size on Overconsumption of Carbonated Soft Drinks

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  • Zheng, Xiaoyong
  • Zhen, Chen
  • Wohlgenant, Michael K.

Abstract

We take a structural approach to examine the effects of larger container size on consumption of carbonated soft drinks---using Nielsen Company's Homescan data on household purchases for the years 2004 through 2006. Our results show that by removing the price discount implicit in packages with larger container size, the average unit price the two households pay for CSD products increase and hence both households (both the low income and the high income) reduce their annual consumption of soft drinks by about 75%. This reduction is due to a combination of reduced number of purchases and switching to products with less number of bottles/cans.

Suggested Citation

  • Zheng, Xiaoyong & Zhen, Chen & Wohlgenant, Michael K., 2008. "Effects of Container Size on Overconsumption of Carbonated Soft Drinks," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6203, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea08:6203
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    References listed on IDEAS

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    1. Diansheng Dong & Harry M. Kaiser, 2005. "Coupon Redemption and Its Effect on Household Cheese Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 689-702.
    2. Jean-Pierre Dubé, 2004. "Multiple Discreteness and Product Differentiation: Demand for Carbonated Soft Drinks," Marketing Science, INFORMS, vol. 23(1), pages 66-81, September.
    3. Matthew Shum, 2004. "Does Advertising Overcome Brand Loyalty? Evidence from the Breakfast-Cereals Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(2), pages 241-272, June.
    4. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    5. Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-468, June.
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    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

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