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Demographic Variability In U.S. Consumer Responsiveness To Carbonated Soft-Drink Marketing Practices

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  • Rhodes, Charles

Abstract

Using three years of Nielson Homescan and advertising data from 16 major metropolitan areas across the U.S. to construct a panel data set that follows weekly consumer purchasing behavior, this paper investigates the impact of marketing activities on a representative cross-section of U.S. consumers. Because many consumers do not participate in the market week-in and week-out, I apply Heckman’s econometric selection model to recover the impact of pricing, advertising, and promotion on a wide range of consumer segments. Reduced-form estimates of consumer responsiveness to these marketing activities reveal different effects across consumer segments, which have numerous implications for marketing policy.

Suggested Citation

  • Rhodes, Charles, 2010. "Demographic Variability In U.S. Consumer Responsiveness To Carbonated Soft-Drink Marketing Practices," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116419, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:eaa115:116419
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    References listed on IDEAS

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    More about this item

    Keywords

    carbonated soft drink; marketing-mix models; demographic segmentation; econometric selection models; Nielsen panel data; food marketing policy; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; D12; L66; M38;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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