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Abstract

The random coefficients multinomial logit model was used to study the demand for yogurt which is differentiated by manufacturer brands and organic information. For this purpose, we used the scanner-level data set collected by the Information Resource Incorporated at the chain level. General Mills and Danone are the two brands with the highest market shares. In general, demand for yogurt has found to be elastic for all brands. On average, consumers are more price-sensitive to non-organic brands than organic brands. Results revealed some degree of brand loyalty and the switching behavior among yogurt consumers.

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