ARE LOWER-INCOME SHOPPERS AS PRICE SENSITIVE AS HIGHER-INCOME ONES?: A LOOK AT BREAKFAST CEREALS

Eugene Jones, Wen S. Chern and Barry K. Mustiful

Journal of Food Distribution Research, 1994, vol. 25, issue 01, 11

Abstract: Scanner data for breakfast cereals are used to estimate demand elasticities for six supermarket stores in two distinct socio-economic areas. Three stores are in low-income locations and three are in high-income locations. A time series cross-section model is estimated for five product categories across six cross sections over forty-two weeks. Results show lower-income shoppers to have more elastic demands for four of the five product categories: private label cold cereals, the top ten brands of cold cereals, all other brands of cold cereals, and hot cereals. Price is not statistically significant for a fifth product category, snack cereals.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlofdr:26645

DOI: 10.22004/ag.econ.26645

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