Source: TEXAS A&M UNIVERSITY submitted to NRP
ANALYSIS OF CONSUMER BEHAVIOR DATA AND MARKET INFORMATION IN ASSESSING THE DEMAND FOR FOOD AND BEVERAGE PRODUCTS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0195990
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jul 24, 2009
Project End Date
Jul 23, 2014
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
TEXAS A&M UNIVERSITY
750 AGRONOMY RD STE 2701
COLLEGE STATION,TX 77843-0001
Performing Department
Agri Economics
Non Technical Summary
We present selected research issues relevant to consumer economics and food marketing, ten in fact. Of course, this list is not meant to be exhaustive. A top ten list of research opportunities consists of: 1. Understanding drivers of demand for food products. 2. How to cater to the time-starved consumer. 3. How to cater to the health-conscious consumer-food safety, health, and nutrition issues. 4. Ascertaining the effectiveness of advertising and promotion as well as spillover effects. 5. Determinants of price spreads or marketing margins. 6. Understanding consumption patterns of selected demographic groups. 7. Structure of the processing, wholesaling, retailing, and food service sectors. 8. Structural analysis of mergers and acquisitions in the food industry. 9. Use of information technology to improve decision-making in retail management and operations. 10. Analysis of new product introductions and acceptance.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6035010301025%
6045010301010%
6075010301050%
6095010301015%
Knowledge Area
603 - Market Economics; 607 - Consumer Economics; 609 - Economic Theory and Methods; 604 - Marketing and Distribution Practices;

Subject Of Investigation
5010 - Food;

Field Of Science
3010 - Economics;
Goals / Objectives
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationships among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.
Project Methods
It is important to build on past research in analyses of demand for food and beverage products, primarily to insure both timely information and reliable information. To that end, we plan to use scanner data from retail food stored acquired from Information Resources, Inc (IRI) or A.C. Nielsen. Scanner data correspond to weekly time-series information of quantities, prices, and sales for various disaggregate commodities. In addition, we plan to use cross-sectional data from the National Panel Diary (NPD) to analyze either individual or household consumption behavior. Moreover, we intend to use data available from the USDA, and other government agencies such as the National Center for Health Statistics (NCHS) concerning the National Health and Nutrition Examination Surveys and the Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys. In objective 1, attention will be centered on the development and enhancement of techniques that address the conceptual and applied econometric problems of estimating demand relationships. We will focus on advancing common theoretical and empirical approaches to analyzing consumption behavior. We plan to revisit the issue of how to handle "zeros" in observations of expenditures or quantities from survey data. Additionally, we intend to rely on various demand system specifications to capture interrelationships among various commodities. In this way, we will be in better position to obtain own-price, cross-price, and expenditure (or income) elasticities of demand. This work will more clearly identify substitution and complementary relationships among various food and beverage items. Also, in the case of time-series data, we plan to derive and compare estimates of demand parameters based on econometric models versus time-series models. This comparison will speak to the robustness of demand estimates from empirical analysis. The methodologies developed and enhanced in Objective 1 will be used to assess the importance of economic, demographic, lifestyle, social, and cultural factors on the demands for various food and beverage products. The first area of focus will be on the relationship between nutritional concerns and dietary intake, especially accounting for differences among socio-demographic and economic groups (e.g. households below 130% of poverty and households above 130% of poverty). The second area of focus will concentrate on the effects of advertising efforts done by various agencies on the demand for associated products. The third area of focus will investigate the effects of changes in economic conditions and socioeconomic characteristics of households in food purchase decisions. Other areas of focus include the influence of various retail strategies (e.g. coupons, featuring) on food purchase decisions; the decision to purchase prepared food and snacks; the expenditure and nutrition patterns of households for non-alcoholic beverages; unilateral price effects of proposed merger activity among industries with differentiated products; the economic forces behind farm-to-retail price spreads; and characterizing the nature of structural change in the demand for fluid milk and other products.

Progress 07/24/09 to 07/23/14

Outputs
Target Audience: Agricultural economists, policy makers, stakeholders in various agribusiness industries Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Continue to pursue research related to demand and price analysis

Impacts
What was accomplished under these goals? Understanding of drivers of demand for alternative dairy functional beverages Understanding the nature of food recalls Understanding the impacts of a tax on sugar-sweeteened beverages

Publications

  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Dharmasena, S. and O. Capps, Jr.,"Unraveling the Demand for Dairy Alternative Functional Beverages in the United States: The Case of Soymilk," Agricultural and Resource Economics Review, 43, 1 (April 2014): 140-157
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Bakhtavoryan, R., O. Capps, Jr., and V.S. Salin, "The Impact of Food Safety Incidents Across Brands: The Case of the Peter Pan Peanut Butter Recall," Journal of Agricultural and Applied Economics, 46, 4 (November 2014): 559-573
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Dharmasena, S., G. S. Davis, and O. Capps, Jr., "Partial Versus General Equilibrium Calories and Industry Revenue Effects of a Sugar-Sweetened Beverage Tax," Journal of Agricultural and Resource Economics, 39, 2 (2014): 157-173
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Bakhtavoryan, R., O. Capps, Jr., and V.S. Salin, "Dynamics of Consumer Response to Food Contamination: The 2007 Peanut Butter Recall," Journal of Food Distribution Research, forthcoming, 2014


Progress 01/01/13 to 09/30/13

Outputs
Target Audience: Agricultural economists, policy makers, stakeholders in the agribusiness industry Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Continue to work on research related to demand and price analysis

Impacts
What was accomplished under these goals? Understanding drivers of demand for food products Understanding the nature of food recalls Understanding the demand for energy drinks Understanding the effects of revised WIC food packages on Native American children

Publications

  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Capps,Jr., O.and R.D. Hanselman, "A Pilot Study of the Market for Energy Drinks," Journal of Food Distribution Research, 43,3 (November 2012): 15-29
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Bakhtavoryan, R., O. Capps, Jr., and V.S. Salin, "Impact of Food Contamination on Brands:A Demand System Estimation of Peanut Butter, " Agricultural and Resource Economics Review, 41,3 (December 2012): 327-339
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Ishdorj, A. and O. Capps, Jr., "The Effects of Revised WIC Food Packages on Native American Children," American Journal of Agricultural Economics, 95, 5 (May 2013): 1266-1272
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Hernandez, M. A., S. C. castillo, and O. Capps, Jr., "Do Marketing Margins Change with Food Scares? Examining the Effects of Food Recalls and Disease Outbreaks in the U.S. Red Meat Industry," Agribusiness: An International Journal, 29 (2013): 426-454


Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: Work was initiated regarding the project dealing with consequences of limiting starchy vegetables in school lunches. This project,funded by the Alliance for Potato Research and Education, deals with analyses of plate waste of various vegetables procured from school lunches in the Bryan and Dallas Independent School Districts. Work also was initiated regarding the evaluation of the milk checkoff program. Demand functions for fluid milk, butter, cheese, and all dairy products as well as demand functions for dairy exports were estimated. Metrics subsequently were developed to provide a rate of return associated by the checkoff funded by dairy producers and milk processors. Marketing and promotion efforts collectively of Dairy Management, Inc, the Milk Processor Education Program and regional and state Qualified Programs were evaluated. Work was completed associated with the impacts of the Peter Pan peanut butter recall. Work was completed dealing with household demand for various natural and processed cheese varieties in the United States. Work on the non-alcoholic beverage complex is continuing. PARTICIPANTS: Individuals working on the aforementioned research projects are members of the Agribusiness, Food and Consumer Economics Research Center (AFCERC) located in the Deaprtment of Agricultural Economics at Texas A&M University. Partner organizations include the Agricultural Marketing Service (AMS), Dairy Management, Inc. (DMI), the Milk Processor Education Program (MilkPeP), and the Southwest Dairy Farmers. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The broad objectives of the research efforts are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, amd other factors on the consumption of food and bevergae products; and (2) to assess the importance of the myriad of forces on the demand for food and bevergae consumption behavior. Additionally, the respective research efforts have policy impacts regarding efforts associated with the National School Lunch Program to provide a healthy diet to children in elementary schools, the effectiveness of the milk checkoff program, and on tax policies associated with sugar-sweetened beverages.

Publications

  • Bakhtavoryan, R., O.Capps, Jr., and V.S. Salin, Impact of Food Contamination on Brands: A Demand System Estimation of Peanut Butter, Agricultural and Resource Economics Review, 41,3 (2012): 1-13.


Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: Work was completed concerning the evaluation of the effectiveness of the cotton checkoff program. In addition, work was completed regarding the effectiveness of Marketing Order 955 in promoting sales of Vidalia onions. Work is continuing regarding the demand for non-alcoholic beverages in the United States, with emphasis on price and advertising effects. The source of data is the Nielsen Home Scan Panel, from 1998 to 2008. Also, work is continuing dealing with the comparison of various imputation methods for missing prices indigenous to cross-sectional or panel data. Further, work is continuing dealing with new age beverage products (e.g. energy drinks; probiotics). Work is underway dealing with the impacts of the recall of Peter Pan peanut butter that took place in early 2007. Work is underway regarding the feasibility of fortifying American processed cheese with omega-3 fatty acids. Work is underway dealing with household demand for various natural and processed cheese varieties in the United States. Finally, work was initiated regarding the effectiveness of the milk checkoff program for dairy producers and processors. PARTICIPANTS: Individuals working on the aforementioned projects are members of the Agribusiness, Food, and Consumer Economics Research Center in the Department of Agricultural Economics at Texas A&M University. Partner organizations include Dairy Management, Inc.,(DMI), the Milk Processors Education Program (MILKPEP), the Cotton Board, the Vidalia Onion Committee, and the Southwest Dairy Farmers TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Capps, Jr., O., V.S. Salin, S. Dharmasena, and R. Hanselman, Effectiveness of Marketing Order 955 in Promoting Sales of Vidalia Onions, A Report Prepared for the Vidalia Onion Committee, December 2011.
  • Williams, G.W. and O. Capps, Jr.,Is the Cotton Checkoff Program Worth the Cost Journal of Cotton Science 15 (2011): 109-126.
  • Dharmasena, S. and O. Capps, Jr.,Intended and Unintended Consequences of a Proposed National Tax on Sugar-Sweetened Beverages to Alleviate the U.S. Obesity Problem, Health Economics (2011), DOI: 10.1002/hec.1738.
  • Kyureghian, G., O. Capps, Jr., and R.M. Nayga, Jr.,A Missing Variable Imputation Methodology with an Empirical Application, Advances in Econometrics: Missing Data Methods 27A (2011): 313-337.
  • Bouhlal, Y. and O. Capps, Jr.,The Impact of Retail Promotion of Private Label Products: The Case of Processed Cheese, Agribusiness: An International Journal 27 (2011): 1-14.
  • Williams, G.W., O. Capps, Jr., D. Hudson, S. Pan, and J. Robinson,Cotton Research and Promotion Program: Economic Effectiveness Study, AFCERC Commodity Market Research Report No. CM-3-11, April 2011.


Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: Work is continuing regarding the demand for non-alcoholic beverages in the United States, with emphasis on price and advertising effects. The source of data is the Nielsen HomeScan Panel, from 1998 to 2008. Work was completed regarding the impacts of a proposed national tax on sugar-sweetened beverages to alleviate the U.S. obesity problem. Work was completed on behalf of the American Lamb Board concerning ethnic lamb buying and preferences. As well, work was completed analyzing the effectiveness of the Lamb, Promotion, Research, and Information Order. Work was completed concerning the impact of retail promotion on the purchase of private label products for processed cheese. Work has begun dealing with new age beverage products (e.g. energy drinks; probiotics). Work has begun on the impacts of the recall of Peter Pan peanut butter that took place in early 2007. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Williams, G.W. and O. Capps, Jr., and T. Dang, "Does Lamb Promotion Work" Agribusiness: An International Journal 26, 4 (2010): 536-556.
  • Alviola, P.A. and O. Capps, Jr., "Household Demand Analysis of Organic and Conventional Fluid Milk in the Unites States Based on the 2004 Nielsen HomeScan Panel," Agribusiness: An International Journal 26, 3 (2010): 369-388.
  • Dharmasena, S., O. Capps, Jr., and A. Clauson, "Ascertaining the Impact of the 2000 USDA Dietary Guidelines for Americans in the Intake of Calories, Caffeine, Calcium, and Vitamin C from At-Home Consumption of Non-Alcoholic Beverages," Journal of Agricultural and Applied Economics 43, 1 (2011): 13-27.


Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: Work is continuing regarding the demand for non-alcoholic beverages in the United States, with emphasis on price and advertising effects. The source of data is the Nielsen HomeScan Panel, from 1998 to 2006. Work was completed regarding the imputation of prices for use with the 2001-02 and the 2003-04 National Health and Nutrition Examination Survey NHANES). Work was completed regarding the demand for organic fluid milk and conventional fluid milk. Work was completed concerning the effectiveness of the soybean checkoff program for the United Soybean Board. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Yuan, Y., R.M. Nayga, Jr., and O Capps, Jr., "Assessing the Demand for a Functional Food Product: Is There Cannibalization in the Orange Juice Category," Agricultural and Resource Economics Review, 38, 2 (October 2009): 153-165.
  • Capps, Jr., O., "Issues Indigenous to Consumer Economics and Food Marketing: Opportunities for Research Contributions," Journal of Agricultural and Applied Economics 41, 2 (2009): 315-322.


Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: 1. Work is continuing regarding the demand for non-alcoholic beverages in the United Stats, with emphasis on price and advertising effects. The source of data is the Nielsen HomeScan Panel. 2. Work is continuing regarding the imputation of prices for use with the 2001-02 and the 2003-04 National Health and Nutrition Examination Survey (NHANES). 3. Work was completed regarding the effectiveness of advertising and promotion programs for The American Lamb Board and the National Pork Board. 4. Work is continuing regarding the demand for organic fluid milk and manufactured dairy products. 5. Work is underway concerning the effectiveness of the soybean checkoff program for the United Soybean Board. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Stockton, M., O. Capps Jr., and D.A. Bessler. 2008. "Samuelson's Full Duality and the Use of Directed Acyclic Graphs," Journal of Applied Econometrics, 11, 1 (May): 167-191.
  • Williams, G.W., O. Capps, Jr., and M.A. Palma. 2008. "Effectiveness of Marketing Promotional Programs: The Case of Texas Citrus," Horticultural Science, 43, 2;385-392.
  • Yuan, Y., R.M. Nayga, Jr., and O. Capps, Jr. 2009. "Assessing the Demand for a Functional Food Product: Is There Cannibalization in the Orange Juice Category?" Agricultural and Resource Economics Review, 38, 2 (October): 1-10.


Progress 01/01/07 to 12/31/07

Outputs
1. Work has been completed regarding the effectiveness of the advertising and promotion program for the Texas Produce Association. 2. Work is continuing regarding the demand for non-alcoholic beverages in the United States; this work is based on the use of the ACNielsen HomeScan Panel from 1998 to 2004. 3. Work is continuing regarding the imputation of prices for use with the 2003-04 National Health and Nutrition Examination Survey (NHAMES). 4. Work is continuing regarding the effectiveness of advertising and promotion progams for the American Lamb Board and the National Pork Board. 5. Work was initiated regarding the demand for organic fluid milk and manufactured dairy products.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Capps, Jr., O. and P. Sherwell. 2007. "Alternative Approaches in Detecting Asymmetry in Farm-Retail Price Transmissions of Fluid Milk," Agribusiness: An International Journal, 23,3 (2007): 313-331.


Progress 01/01/06 to 12/31/06

Outputs
1. Work has been completed regarding the demand for phytosterol-enriched orange juice, yogurt, and margarine products. 2. Work has been completed regarding the evaluation of the cotton checkoff program. Over the period 1976 to 2004, the average discounted BCR for cotton producers was estimated to be 5.7, and the average discounted BCR for cotton importers was estimated to be 14.4. 3. Work is continuing regarding the demand for non-alcoholic beverages in the United States; this work is based on the use of the ACNielsen HomeScan Panel from 1998 to 2004. 4. Work is continuing regarding the imputation of prices for use with the 2003-04 National Health and Nutrition Examination Survey (NHANES). 5. Work is continuing regarding the effectiveness of advertising and promotion programs for The American Lamb Board and for the Texas Produce Association.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, comsumer information, and toher factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Capps, Jr., O., R.M. Nayga, and Y. Yuan. 2006. "Assessing the Demand for Phytosterol-Enriched Products," February 2006.
  • Capps, Jr., O. and G.W. Williams. 2006. "The Economic Effectiveness of the Cotton Checkoff Program," October 2006.
  • Pofahl, G.M., O. Capps, Jr., and H.A. Love. 2006. "Zone-Pricing, Vertical Channel Game-Play, and Simulated Price Effects of Upstream Mergers," International Journal of the Economics of Business, 13,2 (2006): 195-215.
  • Williams, G.W. and O. Capps, Jr. 2006. "Measuring the Effectiveness of Checkoff Programs," Choices (2006): 73-78.
  • Williams, G.W., O. Capps, Jr., and D.A. Bessler. 2006. "The Economic Effectiveness of Orange Juice Advertising," 2006.


Progress 01/01/05 to 12/31/05

Outputs
1. Work is completed regarding asymmetry in farm-to-retail price transmission for fluid milk in several United States cities; both the conventional Houck approach and the error correction model approach are used to determine elasticities of price transmission. 2. Work is completed regarding the use of directed acyclical graphs in identifiying causality in demand systems. This work provides the foundation for the use of mixed demand systems. 3. Work is completed regarding the effectiveness of lamb advertising and promotion. 4. Work is continuing regarding the demand for non-alcoholic beverages in the United States; this work is based on the use of the AC Nielsen Home Scan Panel from 1998 to 2003. 5. Work is underway regarding the demand for phytosterol enriched orange juice, margarine and yogurt products.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, comsumer information, and toher factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Stockton, M.E. and O. Capps, Jr. 2005. Nerlovian Hedonic Models for Three Different Container Sizes of Fluid Milk, Journal of Agricultural and Resource Economics, December 2005, forthcoming.
  • Pofahl, G.M., O. Capps, Jr., and A. Clauson, Demand for Non-Alcoholic Beverages: Evidence from the AC Nielson Home Scan Panel, May 2005.
  • Stockton, M., O. Capps, Jr., and D.O. Dong. 2005. A Characteristic Specific Demand System Analysis with Emphasis on Container Size of Non-Alcoholic Beverages, June 2005.
  • Capps, Jr. O., and G.W. Williams. 2005. Measuring the Effectiveness of Lamb Advertising and Promotion: An Updated Analysis, TAMRC Report to the American Lamb Board, September 2005.
  • Williams, G.W. and O. Capps, Jr. 2005. Household Level Lamb Consumption Patterns, TAMRC Report to the American Lamb Board, September, 2005.
  • Stockton, M. O. Capps, Jr., and D.A. Bessler. 2005. Samuelson's Full Dualitiy and the Use of Directed Acyclical Graphs: The Birth of Causality Identified Demand Systems, December 2005.
  • Capps, Jr. O. and P. Sherwell. 2005. Asymmetry in Farm-Retail Price Transmissions Associated with Whole Milk and Two Percent Milk in Selected Cities: A Comparision of the Conventional Houch Approach and the Error Correction Model Approach, American Journal of Agricultural Economics, December 2005.
  • Pofahl, G.M., O. Capps, Jr., and A. Clauson. 2005. Demand for Non-Alcoholic Beverages: Evidence from the AC Nielson Home Scan Panel, American Journal of Agricultural Economics, December 2005, forthcoming.
  • Stockton, M.E. and O. Capps, Jr. 2005. A Demand System Analysis with Emphasis on Container Size of Non-Alcoholic Beverages, American Journal of Agricultural Economics, December 2005, forthcoming.
  • Capps, Jr. O., A. Clauson, J. Guthrie, G. Pittman, and M. Stockton. 2005. Contributions of Nonalcoholic Beverages to the U.S. Diet, U.S. Department of Agriculture, Economic Research Report Number 1, March 2005.
  • Capps, Jr. O. and P. Sherwell. 2005. Asymmetry in Farm-Retail Transmissions Price Transmission Associated with Fluid Milk Products, May 2005.


Progress 01/01/04 to 12/31/04

Outputs
1. Work is completed regarding the demand for fluid milk. Own-price and cross-price elasticities are reported for fluid milk; white milk; flavored milk; branded milk products; private label milk products; whole milk; fat free milk; 2 percent milk and 1 percent milk. 2. Work is ongoing regarding the demand for non-alcoholic beverages in the the United States using several years of the AC Nielson Home Scan Panel. Emphasis is placed on developing profiles of users of various non-alcoholic beverages using demographic information. Also, own-price and cross-price elasticities for selected non-alcoholic beverages are estimated. 3. Work is ongoing regarding asymmetry in farm-to-retail price transmission for fluid milk in several U.S. cities using the conventional Houck approach and the error correction model approach.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Pittman, G.F. and O.Capps, Jr. 2004. "A Demand System Analysis of Nonalcoholic Beverages: Censoring, Data Frequency, and Demographic Effects on Elasticities," Journal of Agricultural and Resource Economics, Abstract, 29, 3, Forthcoming.
  • Williams, G.W., O. Capps, Jr., and D.A. Bessler. 2004. "Florida Orange Grower Return for Orange Juice Advertising," TAMRC Consumer and Product Research Report No. CP-01-04.
  • Capps, Jr., O., D.A. Bessler, and G.W. Williams. 2004. "Advertising and the Retail Demand for Orange Juice," TAMRC Consumer and Product Research Report No. CP-02-04.
  • Capps, Jr., O. 2004. "The US Demand for Fluid Milk: A Complete Systems Approach by Products and by Container Size,".
  • Pittman, G.F. 2004. "Drivers of Demand, Interrelationships, and Nutritional Impacts Within the Nonalcoholic Beverage Complex, Ph.D. dissertation," Texas A&M University.
  • Stockton, M.C. 2004. "Applications of Demand Analysis for the Dairy Industry Using Household Level Scanner Data, Ph.D. dissertation," Texas A&M University.
  • Stockton, M.C. and O. Capps, Jr. 2004. "Using AC Nielson HOme Scan Data to Assess Unilateral Price Effects of Mergers and Acquisition Activity Among Manufacturers of Ice Cream," Journal of Agricultural and Resource Economics, Abstract, 29,3, Forthcoming.


Progress 01/01/03 to 12/31/03

Outputs
1.Work was completed dealing with evaluating the economic impacts associated with advertising efforts of the Florida Department of Citrus. 2.Work was completed regarding the impacts of prices and demographic factors in the intake of selected fresh and processed pork cuts. 3.Work is ongoing to analyze the demand for non-alcoholic beverages in the United States using the 1999 AC Nielsen Home Scan Panel. 4.Work is ongoing to investigate the demand for fluid and manufactured dairy products. Particular emphasis is placed on the estimation of own-price elasticities for flavored and white milk; branded and private label milk; and fat free, reduced fat, low fat and skim milk.

Impacts
The broad objectives of this research project are twofold: (1) to develop and expand upon alternative methodologies to estimate the relationship among economic forces, demographic factors, consumer information, and other factors on the consumption of food and beverage products; and (2) to assess the importance of the myriad of forces on the demand for food and beverage consumption behavior.

Publications

  • Capps, Jr., O., J.R. Church, and H.A. Love,"Specification Issues and Confidence Intervals on Unilateral Price Effects Analysis," Journal of Econometrics 113, I (May 2003): 3-31
  • Capps, Jr., O., "Demand Projections Segmented by Income for the Highly Competitive Non-Alcoholic Beverage Complex Using the A.C. Nielsen Home Scan Panel Data," Proceedings on a Workshop on the Use of Scanner Data in Policy Analysis, 2003.
  • Capps, Jr., O., and J.L. Park, "Food Retailing and Food Service," in the Veterinary Clinics of North America - Food and Animal Practice -Economics of Red Meat and Dairy Industries, (ed. S.R. Koontz), July 2003, pp 445-461
  • Capps, Jr., O., D.A. Bessler, and G.W. Williams, Evaluating the Economic Impacts Associated with Advertising Effects of the Florida Department Citrus, Final Report Prepared for the Advertising Review Committee in Association with the Florida Department of Citrus and Florida Citrus Mutual, May 2003
  • Capps, Jr., O., "Responding to Consumer Concerns about the Food, Health, and Safety: Discussion," Proceedings from C-Fare Workshop, Positioning Agricultural and Resource Economics: From Priorities to Action, November 2003