Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model

Home Page
About
Submit A Journal
Submit A Conference
Submit Paper/Book
- Submit a Preprint
- Submit a Book
Contact

Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi
Volume:19 Issue:1
Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model

Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model

Pages : 155-180

View : 167 | Download : 181

Publication Date : 2024-04-01

Article Type : Research Paper

Abstract :This study estimates demand for 52 chip brands using IRI scanner data. The multinomial logit model addresses dimensionality and endogeneity issues in demand estimation. All brands exhibit elastic demand, with own-price elasticities between -5.0412 and -1.4251, indicating high consumer responsiveness to price changes. Notably, tortilla chip brands are less elastic than potato chip brands. Baked chip brands fall under the category of highly elastic brands. Funyuns has the most elastic demand, while Calidad Triangle has the least elastic demand. Cross-price elasticities (0.0010 to 0.0263), exhibiting the IIA property, indicate that consumers have brand loyalty, as seen by comparisons with own-price elasticities\' magnitudes.
Keywords : Farklılaştırılmış Ürün Talebi, Cips Talebi, Multinomial Logit Model

ORIGINAL ARTICLE URL

VIEW PAPER (PDF)

* There may have been changes in the journal, article,conference, book, preprint etc. informations. Therefore, it would be appropriate to follow the information on the official page of the source. The information here is shared for informational purposes. IAD is not responsible for incorrect or missing information.