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Abstract

Produce departments are important to the profitability and competitiveness of grocery stores. Understanding how variables beyond price and seasonality impact the demand and ultimately sales for produce is vital. This study finds display size and the use of multiple displays to be the most powerful tools (after price) that produce managers have available to them, but only with the right products. Also, point-of-purchase signage is found to have limited impact. These findings are based on the estimation of a demand system of fruits with prices, advertising size and location, display size (including multiple displays), and product origin among the explanatory variables.

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