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Abstract

A probit model is estimated using the 2014 Nielsen Homescan Panel data on household purchases to empirically analyze the influence of demographic variables on the probability of households purchasing organic and conventional flour. A number of demographic variables are found to be statistically significant impacting the likelihood of purchasing organic and conventional flour. In particular, household head’s employment status, education level, marital status, and geographic region are the statistically significant factors impacting the probability of purchasing organic flour. Also, household size, household head’s age, employment status, education level, marital status, race, and geographic region are the statistically significant factors influencing the probability of purchasing conventional flour.

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