Using Scanner Data to Test for Elasticity Differences Among Higher and Lower Income Shoppers: A Socioeconomic Approach for Breakfast Cereals
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2096
Scanner data are used to estimate demand elasticities for breakfast cereals 1n two socioeconomic areas. Five groups of cereals are identified and the own-price elasticities for four of these are negative, statistically significant, and in the elastic range. Snack cereals, an identified category, show statistically insignificant elasticities and impulse buying is offered as the explanation. Lower-income shoppers are more inclined to purchase the lowest-priced products within a product group; they are also more predisposed to select purchases from lower-priced product groups. Lower-income shoppers purchase private label cereals with twice the frequency of higher-income shoppers.
Exact date of working paper unknown.