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Coffee Differentiation: Demand Analysis at Retail Level in the US Market


  • Alamo, Carmen I.
  • Malaga, Jaime E.


Scanned data was used to estimate US coffee demand using an AIDS model. The estimated elasticities have the expected signs and magnitude. Differentiated coffees are complements for regular and unclassified while regular and unclassified coffees are substitutes. These results could be useful in designing marketing strategies by coffee suppliers.

Suggested Citation

  • Alamo, Carmen I. & Malaga, Jaime E., 2012. "Coffee Differentiation: Demand Analysis at Retail Level in the US Market," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119885, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea12:119885

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    References listed on IDEAS

    1. Alviola, Pedro A., IV & Capps, Oral, Jr. & Wu, Ximing, 2009. "Micro-Demand Systems Analysis of Non-Alcoholic Beverages in the United States: An Application of Econometric Techniques Dealing With Censoring," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60462, Agricultural and Applied Economics Association.
    2. Rakotoarisoa, Manitra A. & Henneberry, Shida Rastegari & Shapouri, Shahla & Trueblood, Michael A., 2003. "The Export Market For Differentiated Processed Agricultural Products: The Role Of Factor Prices And Fixed Costs," 2003 Annual meeting, July 27-30, Montreal, Canada 21964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    4. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U. S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(02), pages 147-159, October.
    5. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood & Margaret Andrews, 2004. "Demand for nonalcoholic beverages: The case of low-income households," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 309-321.
    6. Houston, Jack E. & Santillan, Manlio & Marlowe, Julia, 2003. "U.S. Demand For Mild Coffees: Implications For Mexican Coffee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(01), March.
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    demand; coffee; differentiation; Demand and Price Analysis;

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