Consumer Choice of Private Label or National Brand: The case of organic and non-organic milk

Yan Zhuang, Carolyn Dimitri (carolyn.dimitri@nyu.edu) and Edward Jaenicke

No 49207, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: We use a two-stage, sample selection model to investigate organic milk purchases using Neilsen’s Homescan data. In the first stage, households decide on a weekly basis to buy mainly organic milk or non-organic milk. Results from this stage show that higher income, better education, having children at home, and several other demographic and marketing variables have a positive effect on organic choice. In the second stage, consumers then choose to buy mainly private label milk or national brand milk conditional on their first-stage choice. Most demographic and marketing variables are found to affect the organic and non-organic private label decision in the same way. However, our results show that a few factors, such as marriage status and children, affect the private label decision differently for organic and non-organic milk customers.

Keywords: Agribusiness; Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 30
Date: 2009-04
New Economics Papers: this item is included in nep-mkt
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49207

DOI: 10.22004/ag.econ.49207

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