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Consumers in a box: A consumer report on cereal
Author(s) -
Gejdenson Samuel,
Schumer Charles
Publication year - 1999
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/(sici)1520-6297(199921)15:2<207::aid-agr5>3.0.co;2-o
Subject(s) - econlit , cites , business , breakfast cereal , product (mathematics) , value (mathematics) , marketing , private label , consumer demand , economics , agricultural economics , production (economics) , commerce , advertising , microeconomics , food science , chemistry , geometry , mathematics , medline , machine learning , fishery , political science , computer science , law , biology
A report was issued on March 7, 1995 which found that cereal industry prices have accelerated faster than other foods to high noncompetitive levels. The leading companies' differentiation strategy has constrained the growth of economical private label cereals. Furthermore, reliance on inefficient coupons and promotions do not provide real value to the vast majority of American consumers. We conclude that in a competitive cereal industry, one or more manufacturers would break from the pack, cease expensive product proliferation, and reduce prices. Price competitive companies could continue to make healthy profits by reducing excessive advertising and eliminating inefficient promotions, which total hundreds of millions of dollars each year. [EconLit cites: L100, L410, L660] © 1999 John Wiley & Sons, Inc.