Estimates of Promotional Impacts on Orange Juice and Grapefruit Juice Demand Based on Time Series and Cross-Sectional Data

The cross-section and time series model used in this study yielded a number of important estimates for OJ and GJ demand. The own- and cross-price elasticities were, in general, similar to those found in past studies. The dummy variable estimates to control for city size, seasonality and other city specific trends appear reasonable, suggesting this modeling approach, and perhaps other variants, is useful for analyzing combined city data over time. The promotional estimates of the study support previous findings that featuring and displays significantly increase demand. Features and displays together have the largest impact. Price discounts have the smaller impacts but their magnitudes are larger than found in previous studies. Finally, although both the OJ and GJ promotional impacts were relatively large, those for GJ were larger than those for OJ.

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Jul 31 2009
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