An ordered probit regression model for estimating the effects of demographic factors on rice consumption in Saudi Arabia

Abdulla M. Alhemoud

International Journal of Business and Globalisation, 2011, vol. 6, issue 1, 92-103

Abstract: This study attempts to examine the effects of demographic characteristics on rice consumption in Saudi Arabia. The main objective of the study is to provide Saudi importers and retailers with information necessary for building segmented marketing strategies and for launching marketing campaigns. Data were collected primarily from male customers after exiting randomly selected supermarkets in three major metropolitan Saudi cities. An ordered probit regression was employed to achieve the purpose of the study. The results showed that demographic variables influence the level of rice consumption. It was found that younger and unmarried respondents were less likely to be in the high consumption category. Family composition was found to have a positive impact on rice consumption. Saudis with low incomes were more likely to consume rice more frequently than those with higher incomes, confirming that rice is an inferior good. The education level was found to negatively influence the level of rice consumption. Based on the study's findings, it is recommended that rice retailers focus their promotional campaigns on attracting young and more educated consumers. Conclusion and limitations of the research are also discussed.

Keywords: rice consumption; demographic characteristics; ordered probit regression; Saudi Arabia; food; importers; imports; retailers; retailing; segmented marketing; male customers; gender; supermarkets; demographic variables; young people; unmarried people; high consumption; family composition; families; positive impacts; low incomes; higher incomes; inferior goods; promotional campaigns; education levels; negative influences; Riyadh; Jeddah; Dammam; cities; metropolitan areas; unskilled workers; foreign workers; India; Pakistan; Indonesia; Philippines; business; globalisation; Asia. (search for similar items in EconPapers)
Date: 2011
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