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Are Lower-Income Shoppers As Price Sensitive As Higher-Income Ones?: A Look At Breakfast Cereals

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

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.

Suggested Citation

  • Jones, Eugene & Chern, Wen S. & Mustiful, Barry K., 1994. "Are Lower-Income Shoppers As Price Sensitive As Higher-Income Ones?: A Look At Breakfast Cereals," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(1), pages 1-11, February.
    • Handle: RePEc:ags:jlofdr:26645
    DOI: 10.22004/ag.econ.26645
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    References listed on IDEAS

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    Cited by:

    1. Zhao, Jianqiang J. & Kaiser, Harry M. & Zheng, Yuqing, 2022. "Do grocery food taxes incentivize participation in SNAP?," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    2. Melo, Grace & Zhen, Chen, 2017. "The Impact of NuVal Shelf Nutrition Labels on Consumption: Evidence from Cold Cereal Purchases," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 253080, Southern Agricultural Economics Association.
    3. Melo, Grace & Zhen, Chen, 2017. "The Impact of NuVal Shelf Nutrition Labels on Consumption: Evidence from Cold Cereal Purchases," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252442, Southern Agricultural Economics Association.
    4. Ejaz Qureshi, M. & Hanjra, Munir A. & Ward, John, 2013. "Impact of water scarcity in Australia on global food security in an era of climate change," Food Policy, Elsevier, vol. 38(C), pages 136-145.
    5. Adena, Maja & Hakimov, Rustamdjan & Huck, Steffen, 2019. "Charitable giving by the poor: A field experiment on matching and distance to charitable output in Kyrgyzstan," Discussion Papers, Research Unit: Economics of Change SP II 2019-305, WZB Berlin Social Science Center.
    6. Braut, Beatrice & Zaccagni, Sarah, 2023. "Emotional reactions to food interventions: Evidence from an online survey," Research in Economics, Elsevier, vol. 77(3), pages 419-426.
    7. Bakhshoodeh, M., 2010. "Impacts of world prices transmission to domestic rice markets in rural Iran," Food Policy, Elsevier, vol. 35(1), pages 12-19, February.
    8. Mohammad Bakhshoodeh, 2008. "Impacts of World Prices Transmission to Domestic Markets and Welfare of Marginal Households: An Empirical Application to Rice in Iran," Working Papers 399, Economic Research Forum, revised 03 Jan 2008.
    9. Innocent, Kwagala, 2018. "Consumer Acceptance And Willingness To Pay For Shelf Life Extended Fresh Cassava Roots In Uganda: Case Of Kampala District," Research Theses 276439, Collaborative Masters Program in Agricultural and Applied Economics.
    10. Melo, Grace, 2017. "The Impact of NuVal Shelf Nutrition Labels on Consumption: Evidence from Cold Cereal Purchases," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252421, Southern Agricultural Economics Association.
    11. Greenacre, Luke & Akbar, Skye, 2019. "The impact of payment method on shopping behaviour among low income consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 87-93.

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