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Shopping For Meat: Empirical Demand Estimation For Natural Beef Across Store Choices


  • Thilmany, Dawn D.
  • Grannis, Jennifer L.
  • Sparling, Edward


Conventional supermarkets concentrate on capturing the largest pool of consumers to generate profits from the industry's low margins. Selling to the largest pool of customers means that marketing, promotion, stocking and service decisions are based on the tastes and preferences of an average consumer. Innovators in the grocery industry, recognizing a shift in consumer tastes and preferences, are changing the industry to attract smaller segments of consumers. The theory presented here demonstrates a method to understand the value of product diversification and a model of the gains from providing products that may not have broad appeal to the average customer base. The increase in retail returns through this approach of developing in-store niches lies not in increased single-item purchases of any one consumer, but through the increased number of items purchased (a larger bundle) by an individual on a single shopping trip.

Suggested Citation

  • Thilmany, Dawn D. & Grannis, Jennifer L. & Sparling, Edward, 2001. "Shopping For Meat: Empirical Demand Estimation For Natural Beef Across Store Choices," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36157, Western Agricultural Economics Association.
  • Handle: RePEc:ags:waealo:36157

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    References listed on IDEAS

    1. Richman, Nessa J., 2000. "The Growing Natural Foods Market: Opportunities And Obstacles For Mass Market Supermarkets," Working Papers 14317, University of Minnesota, The Food Industry Center.
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    Cited by:

    1. Evans, Jason R. & D'Souza, Gerard E. & Collins, Alan R. & Brown, Cheryl & Sperow, Mark, 2011. "Determining Consumer Perceptions of and Willingness to Pay for Appalachian Grass-Fed Beef: An Experimental Economics Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), August.
    2. Andreas Widenhorn & Klaus Salhofer, 2014. "Price Sensitivity Within and Across Retail Formats," Agribusiness, John Wiley & Sons, Ltd., vol. 30(2), pages 184-194, March.
    3. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.
    4. Lusk, Jayson L. & Cevallos, Edgar, 2004. "Factors Influencing Demand for a Producer-Owned Beef Retail Outlet," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.


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