Assessing key factors influencing orange juice demand in the current US market

Yan Heng, Ronald W. Ward, Lisa House and Marisa Zansler

Agribusiness, 2019, vol. 35, issue 4, 501-515

Abstract: The US orange juice (OJ) industry has experienced dramatic changes and pressure from both the supply and demand side in the past decade. It is critical for the industry to understand and enhance consumer's demand to sustain the higher prices associated with decreased production and maintain demand for the point in time where production can recover. This study utilized both Nielsen scanner data and a unique consumer tracker database to explore the impact of key factors on OJ consumption to estimate the return on investment. The usage of two datasets and multiple methods increases the reliability of results. Our results identified several demand drivers including demographics, health conditions, promotion awareness, and consumer's positive perceptions. Moreover, this study implies that a larger positive impact can be obtained by focusing on the positive aspects over responding to negative news. Therefore, we suggest the industry enhance generic promotion and advertising awareness and develop marketing programs that emphasize the positive attributes and benefits of OJ.

Date: 2019
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https://doi.org/10.1002/agr.21596

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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:35:y:2019:i:4:p:501-515

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