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Abstract

This article intends to explore consumers’ heterogeneous preferences for health and nutritional attributes of frozen fried potatoes (FFP) by analyzing an important urban area of a Latin American country, Argentina, where FFP remain to be the most preferred side dish when people choose to eat fast food, among the available options of a growing market. Results shed light on what drive differences in consumers’ valuation and how demographic characteristics affect price sensitivity and substitution patterns, which are the main magnitudes considered when introducing any market regulation or public policy. By accounting for the heterogeneity-in-preferences estimation also provides insightful information for suppliers for optimally launch price differentiation strategies.

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