Zero-inflated ordered probit approach to modeling mushroom consumption in the United States

Yuan Jiang, Lisa House, Hyeyoung Kim and Susan S. Percival

International Food and Agribusiness Management Review, 2017, vol. 20, issue 5

Abstract: This paper investigates the determinants of fresh and processed mushroom consumption in the United States by employing the zero-inflated ordered probit (ZIOP) model. The ZIOP model accounts for excessive zero observations and allows us to differentiate between genuine non-consumers and individuals who did not consume during the given period but might under different circumstances. The results indicate that the market for fresh mushrooms is larger than that for processed mushrooms. However, the market for processed mushrooms has a larger portion of potential consumers which might indicate more potential if appropriate marketing strategies are applied. The results also suggest that the decisions to participate in the market or not and the consumption frequency are driven by structurally different factors. A comparison of the ZIOP to other models is included to show the advantages of allowing for non-consumers and potential consumers to be analyzed separately.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:266410

DOI: 10.22004/ag.econ.266410

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