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Modeling A Household's Choice among Food Store Types
Author(s) -
Dong Diansheng,
Stewart Hayden
Publication year - 2012
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aas013
Subject(s) - multinomial logistic regression , demographics , discrete choice , food choice , business , marketing , economics , econometrics , demography , statistics , mathematics , medicine , pathology , sociology
A household's choice among the different types of food stores to patronize depends on characteristics of both the stores and the household. Store characteristics include prices and promotional deals. Two types of household characteristics are important: the household's specific purchase history and demographics. This study proposes a new multinomial logit model to account for these choice determinants. In an empirical application to fluid milk, we find that store characteristics and both household demographics and purchase history are significant determinants of a household's store‐type choices and must all be included in a choice model.