Market Competitiveness, Demographic Profiling of Demand and Tax Policies Associated with Sparkling and Non-Sparkling Bottled Water in the United States

Wen Zheng, Senarath Dharmasena, Ramkumar Janakirarman and Oral Capps

No 196790, 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia from Southern Agricultural Economics Association

Abstract: Bottled water has become the second largest in the nonalcoholic beverage market just behind the market for soft drinks. Knowledge of price sensitivity, substitutes or complements, and demographic profiling and tax issues with respect to consumption of sparkling and non-sparkling bottled water is important for manufacturers, retailers, advertisers, and other stakeholders from a competitive intelligence and strategic decision-making perspective. Using nationally representative household level data from 62,092 households (Nielsen Homescan), and tobit econometric procedure, factors affecting the demand for sparkling and non-sparkling bottled water will be determined. Moreover, own-price, cross-price, and income elasticities for sparkling and non-sparkling bottled water will be estimated. Finally, we evaluate the effect of a 10% tax on bottled water as they affect for non-sparkling bottled water and sparkling bottled water consumption.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2015-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea15:196790

DOI: 10.22004/ag.econ.196790

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