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What is it consumers really want, and how can their preferences be influenced? The case of fat in milk

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Abstract

In this paper we investigate preferences for fat in milk through a structural characteristics model. The data includes information about daily purchases and social and demographic characteristics of more than 1,100 households. We find that consumers who prefer milk with a high fat content do not react to information about health effects, but can be influenced by prices, while consumers who prefer milk with a low share of fat are influenced by information, but are less price sensitive. Therefore, when attempting to decrease consumption of fat from milk, prices are more efficient than information. Copyright Springer-Verlag 2013

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  • Laura Andersen & Sinne Smed, 2013. "What is it consumers really want, and how can their preferences be influenced? The case of fat in milk," Empirical Economics, Springer, vol. 45(1), pages 323-347, August.
    • Handle: RePEc:spr:empeco:v:45:y:2013:i:1:p:323-347
    DOI: 10.1007/s00181-012-0619-8
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    More about this item

    Keywords

    Fat in milk; Characteristics model; Hedonic prices; Information; Panel data; D12;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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