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Quality Differentiation with Flavors: Demand Estimation of Unobserved Attributes

Daniel Toro-Gonzalez, Jia Yan (), R. Karina Gallardo () and Jill McCluskey ()
Authors registered in the RePEc Author Service: Daniel Toro González ()

No 2012-6, Working Papers from School of Economic Sciences, Washington State University

Abstract: This article estimates the demand for mint-flavored gum products using grocery store sales data and accounting for consumers’ valuation of quality. Unobserved product attributes, such as flavor quality, are important elements to consider when estimating the demand for gum. The estimation results suggest that gum is an inelastic product. A positive relationship between willingness to pay and unobserved quality was identified, implying that gum industry should be able to command a premium for higher quality mint flavored products.

Keywords: Quality Differentiation; Unobserved Product Attributes; Demand Estimation; Gum (search for similar items in EconPapers)
JEL-codes: C61 C62 D92 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2012-08
New Economics Papers: this item is included in nep-bec, nep-com and nep-mkt
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Citations: View citations in EconPapers (2) Track citations by RSS feed

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Journal Article: Quality Differentiation with Flavors: Demand Estimation of Unobserved Attributes (2013) Downloads
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