IDEAS home Printed from https://ideas.repec.org/p/ags/ualbpr/99703.html
   My bibliography  Save this paper

Analysis of Value-Added Meat Product Choice Behaviour by Canadian Households

Author

Listed:
  • Zhang, Xu
  • Goddard, Ellen W.

Abstract

The competitive landscape in retailing has changed over the past decade. Moreover, the degree of product differentiation has been increasing: households are able to choose between an increasing number of store brands and national brands of similar products. The value added meat market is no different than any other sector of the grocery market – both national brands and private label brands are being developed to appeal to the consumer‘s desire for convenience, health, production and environmental attributes. Understanding the factors that are influencing consumers‘ value added meat product preferences is important for meat manufacturers who wish to add value to their firm‘s performance and increase market share. This knowledge is required in order to predict changes in demand and develop new products and marketing strategies that respond to changing consumer needs. The objective of the paper is to provide information on value added meat consumption patterns in Canada at the household level using household purchase information from a representative sample of the Canadian population collected through Nielsen Homescan™. Specifically the focus is on how meat consumers make their decision to purchase value-added meat products – the impact of value added meat types, store choices and brands preference on meat demand. The study undertakes an empirical investigation of Canadian household value added meat demand for the period 2002 to 2007. A comparison of consumers‘ preferences is performed with respect to store-switching, brand loyalty and meat expenditure. Multivariate regression analysis is employed to explain consumer preferences for the examined stores, products and brands. We find that meat price, advertising, the number of stores visited, household socio-demographic characteristics and regional segments are strongly related to meat expenditure levels. Value added meat product preferences vary widely across meat types - for example, consumer behaviour towards pork is not a good predictor of behaviour towards poultry, in terms of national brand/store brand choice. The data developed in this analysis can highlight6 marketing opportunities that exist for meat producers and processors to increase the value of total sales for their particular products. The results of this study highlight the impact of number of stores regularly shopped at on purchases of national brand versus private label meat products, the impact of expenditure on meat by product form on national brand versus private label and the impact of demographic and regional variables on all meat purchases, by animal species.

Suggested Citation

  • Zhang, Xu & Goddard, Ellen W., 2010. "Analysis of Value-Added Meat Product Choice Behaviour by Canadian Households," Project Report Series 99703, University of Alberta, Department of Resource Economics and Environmental Sociology.
    • Handle: RePEc:ags:ualbpr:99703
    DOI: 10.22004/ag.econ.99703
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/99703/files/PR-10-04.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.99703?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeongwen Chiang, 1991. "A Simultaneous Approach to the Whether, What and How Much to Buy Questions," Marketing Science, INFORMS, vol. 10(4), pages 297-315.
    2. Rémy Lambert & Bruno Larue & Clément Yélou & George Criner, 2006. "Fish and meat demand in Canada: Regional differences and weak separability," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 175-199.
    3. Xu, Xiaosong & Veeman, Michele M., 1996. "Model Choice and Structural Specification for Canadian Meat Consumption," Staff Paper Series 24068, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. James A. Chalfant & Richard S. Gray & Kenneth J. White, 1991. "Evaluating Prior Beliefs in a Demand System: The Case of Meat Demand in Canada," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 476-490.
    5. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 157-171, June.
    6. Tyagi Rajeev K., 2006. "Store Brand Strength," Review of Marketing Science, De Gruyter, vol. 4(1), pages 1-18, February.
    7. Esbjerg, Lars & Bech-Larsen, Tino, 2009. "The brand architecture of grocery retailers: Setting material and symbolic boundaries for consumer choice," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 414-423.
    8. Tyagi Rajeev K., 2006. "Store Brand Strength," Review of Marketing Science, De Gruyter, vol. 4(1), pages 1-1, February.
    9. Sethuraman Raj, 2003. "Measuring National Brands' Equity over Store Brands," Review of Marketing Science, De Gruyter, vol. 1(1), pages 1-28, August.
    10. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    11. Amalia Yiannaka & Konstantinos Giannakas & Kien Tran, 2002. "Medium, message and advertising effectiveness in the Greek processed meats industry," Applied Economics, Taylor & Francis Journals, vol. 34(14), pages 1757-1763.
    12. Lerohl, Mel L. & Goddard, Ellen W. & Lomeli, Jose L., 2004. "Effects Of Advertising, Food Safety And Health Concerns On Meat Demand In Canada," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(1), pages 1-3, March.
    13. Unknown, 2009. "An Overview of the Canadian Agriculture and Agri-Food System 2009," Economic and Market Information 59885, Agriculture and Agri-Food Canada.
    14. Xu, Xiaosong & Veeman, Michele, 1996. "Model Choice and Structural Specification for Canadian Meat Consumption," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(3), pages 301-315.
    15. Zuhair A. Hassan & Stanley R. Johnson, 1979. "The Demand for Meat in Canada: an Application of the Transformation of the Variables," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 27(3), pages 1-12, November.
    16. Giancarlo Moschini & Vissa Anuradha, 1993. "Flexible Specification of Mixed Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 1-9.
    17. Anderson Reynolds & Ellen Goddard, 1991. "Structural Change in Canadian Meat Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 211-222, July.
    18. Ó González-Benito & M P Martínez-Ruiz & A Molla-Descals, 2009. "Spatial mapping of price competition using logit-type market share models and store-level scanner-data," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 52-62, January.
    19. Karsten Hansen & Vishal Singh & Pradeep Chintagunta, 2006. "Understanding Store-Brand Purchase Behavior Across Categories," Marketing Science, INFORMS, vol. 25(1), pages 75-90, 01-02.
    20. Chioveanu, Ioana, 2008. "Advertising, brand loyalty and pricing," Games and Economic Behavior, Elsevier, vol. 64(1), pages 68-80, September.
    21. Yuxin Chen & Sha Yang & Ying Zhao, 2008. "A Simultaneous Model of Consumer Brand Choice and Negotiated Price," Management Science, INFORMS, vol. 54(3), pages 538-549, March.
    22. Eales, James S., 1996. "A Symmetric Approach To Canadian Meat Demand Estimation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-13, December.
    23. Zuhair A. Hassan & S. R. Johnson, 1983. "Quarterly Demands for Meat in Canada with Alternative Seasonality Hypotheses," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(1), pages 77-94, March.
    24. Kinsey, Jean D. & Senauer, Benjamin & Jonk, Yvonne, 1993. "Desirable Attributes For Value Added Meat Products Survey 1993," Working Papers 14430, University of Minnesota, Center for International Food and Agricultural Policy.
    25. Unknown, 2008. "An Overview of the Canadian Agriculture and Agri-Food System," Economic and Market Information 46805, Agriculture and Agri-Food Canada.
    26. Konishi, Hideo, 2005. "Concentration of competing retail stores," Journal of Urban Economics, Elsevier, vol. 58(3), pages 488-512, November.
    27. Hayden Stewart & Noel Blisard, 2008. "Who Pays More for Food?," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 150-168, February.
    28. Sethuraman Raj, 2003. "Measuring National Brands' Equity over Store Brands," Review of Marketing Science, De Gruyter, vol. 1(1), pages 1-28, August.
    29. Nicholas E. Piggott, 2000. "The Incidence of the Costs and Benefits of Generic Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 665-671.
    30. Karray, Salma & Martín-Herrán, Guiomar, 2009. "A dynamic model for advertising and pricing competition between national and store brands," European Journal of Operational Research, Elsevier, vol. 193(2), pages 451-467, March.
    31. Wim Verbeke & Ronald W. Ward & Jacques Viaene, 2000. "Probit analysis of fresh meat consumption in Belgium: Exploring BSE and television communication impact," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 215-234.
    32. André Bonfrer & Pradeep K. Chintagunta, 2004. "Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 195-218, March.
    33. Brenda L. Boetel & Donald J. Liu, 2003. "Evaluating the effect of generic advertising and food health information within a meat demand system," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 345-354.
    34. Jeroen Hinloopen & Stephen Martin, 1997. "Market‐structure Determinants of National Brand–Private Label Price Differences of Manufactured Food Products: Comment," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 219-223, June.
    35. Sam K. Hui & Eric T. Bradlow & Peter S. Fader, 2009. "Testing Behavioral Hypotheses Using an Integrated Model of Grocery Store Shopping Path and Purchase Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(3), pages 478-493.
    36. repec:bla:jindec:v:45:y:1997:i:2:p:219-23 is not listed on IDEAS
    37. Wagner A. Kamakura & Byung-Do Kim & Jonathan Lee, 1996. "Modeling Preference and Structural Heterogeneity in Consumer Choice," Marketing Science, INFORMS, vol. 15(2), pages 152-172.
    38. Pradeep K. Chintagunta, 1993. "Investigating Purchase Incidence, Brand Choice and Purchase Quantity Decisions of Households," Marketing Science, INFORMS, vol. 12(2), pages 184-208.
    39. Alexander Chernev, 2006. "Decision Focus and Consumer Choice among Assortments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(1), pages 50-59, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aye Chan Myae & Ellen Goddard, 2020. "Household behavior with respect to meat consumption in the presence of BSE and CWD," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 315-341, September.
    2. Goddard, Ellen W. & Schram, Craig & Huang, Wenzhao & Yang, Jun & Drescher, Larissa S., 2010. "Value-Added Meat: Measuring Past Successes and Predicting Future Winners," Project Report Series 107191, University of Alberta, Department of Resource Economics and Environmental Sociology.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karagiannis, G. & Katranidis, S. & Velentzas, K., 2000. "An error correction almost ideal demand system for meat in Greece," Agricultural Economics, Blackwell, vol. 22(1), pages 29-35, January.
    2. Eales, James & Veeman, Michele & Fulton, Joan, 1993. "Canadian Demand for Meats," Project Report Series 232377, University of Alberta, Department of Resource Economics and Environmental Sociology.
    3. Groznik, Ana & Heese, H. Sebastian, 2010. "Supply chain interactions due to store-brand introductions: The impact of retail competition," European Journal of Operational Research, Elsevier, vol. 203(3), pages 575-582, June.
    4. Griffith, Rachel & Smith, Kate & Krol, Michal, 2015. "Store Brands and the Role of Advertising," CEPR Discussion Papers 10877, C.E.P.R. Discussion Papers.
    5. Kim, Chul & Jun, Duk Bin & Park, Sungho, 2018. "Capturing flexible correlations in multiple-discrete choice outcomes using copulas," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 34-59.
    6. repec:ags:ijag24:346834 is not listed on IDEAS
    7. Anders, Sven M. & Moeser, Anke, 2008. "Using Retail Scanner Data to Assess the Demand for Value-based Ground Meat Products in Canada," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44154, European Association of Agricultural Economists.
    8. Raj Sethuraman, 2009. "Assessing the External Validity of Analytical Results from National Brand and Store Brand Competition Models," Marketing Science, INFORMS, vol. 28(4), pages 759-781, 07-08.
    9. Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
    10. Greg M. Allenby & Thomas S. Shively & Sha Yang & Mark J. Garratt, 2004. "A Choice Model for Packaged Goods: Dealing with Discrete Quantities and Quantity Discounts," Marketing Science, INFORMS, vol. 23(1), pages 95-108, June.
    11. Lerohl, Mel L. & Goddard, Ellen W. & Lomeli, Jose L., 2004. "Effects Of Advertising, Food Safety And Health Concerns On Meat Demand In Canada," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(1), pages 1-3, March.
    12. Sherafatmand, Habibeh & Baghestany, Ali Akbar, 2015. "Comparison of Rotterdam Model versus almost ideal demand system for fish and red meat," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(1), June.
    13. Michaela Draganska & Dipak C. Jain, 2006. "Consumer Preferences and Product-Line Pricing Strategies: An Empirical Analysis," Marketing Science, INFORMS, vol. 25(2), pages 164-174, 03-04.
    14. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Menegatti, Mario, 2013. "The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 617-624.
    15. Sven Anders & Anke Mőser, 2010. "Consumer Choice and Health: The Importance of Health Attributes for Retail Meat Demand in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 249-271, June.
    16. Sethuraman, Raj & Gielens, Katrijn, 2014. "Determinants of Store Brand Share," Journal of Retailing, Elsevier, vol. 90(2), pages 141-153.
    17. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
    18. Pradeep Chintagunta & Jean-Pierre Dubé & Vishal Singh, 2003. "Balancing Profitability and Customer Welfare in a Supermarket Chain," Quantitative Marketing and Economics (QME), Springer, vol. 1(1), pages 111-147, March.
    19. Jaehwan Kim & Greg M. Allenby & Peter E. Rossi, 2002. "Modeling Consumer Demand for Variety," Marketing Science, INFORMS, vol. 21(3), pages 229-250, December.
    20. Moschini, G. & Moro, D., 1993. "A Food demand System for Canada," Papers 1-93, Gouvernement du Canada - Agriculture Canada.
    21. Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.

    More about this item

    Keywords

    Consumer/Household Economics; Demand and Price Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ualbpr:99703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/drualca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.