Abstract
The demand for functional foods has increased notably in recent years due to growing consumer interest in diet and health issues. Currently, the food industry is introducing many types of new food products with functional attributes. Consequently, cannibalization is a critical issue for firms that offer multiple products within a certain product category. The identification and assessment of cannibalization are integral factors when making strategic decisions about new product introductions. Using scanner data from Information Resources, Inc. (IRI), pertaining to a particular functional food, namely a phytosterol-enriched product for orange juice, we find that no cannibalization effects exist with respect to its introduction. We also provide estimates of own-price and cross-price elasticities of the orange juice category using a synthetic demand system.
| Original language | English |
|---|---|
| Pages (from-to) | 153-165 |
| Number of pages | 13 |
| Journal | Agricultural and Resource Economics Review |
| Volume | 38 |
| Issue number | 2 |
| Publication status | Published - 2009 Oct 1 |
| Externally published | Yes |
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Keywords
- Cannibalization
- Functional foods
- Orange juice industry
- Phytosterols
- Synthetic demand system
ASJC Scopus subject areas
- Agronomy and Crop Science
- Economics and Econometrics
Cite this
Assessing the demand for a functional food product : Is there cannibalization in the orange juice category? / Yuan, Yan; Capps, Oral; Nayga, Jr, Rodolfo M.
In: Agricultural and Resource Economics Review, Vol. 38, No. 2, 01.10.2009, p. 153-165.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Assessing the demand for a functional food product
T2 - Is there cannibalization in the orange juice category?
AU - Yuan, Yan
AU - Capps, Oral
AU - Nayga, Jr, Rodolfo M.
PY - 2009/10/1
Y1 - 2009/10/1
N2 - The demand for functional foods has increased notably in recent years due to growing consumer interest in diet and health issues. Currently, the food industry is introducing many types of new food products with functional attributes. Consequently, cannibalization is a critical issue for firms that offer multiple products within a certain product category. The identification and assessment of cannibalization are integral factors when making strategic decisions about new product introductions. Using scanner data from Information Resources, Inc. (IRI), pertaining to a particular functional food, namely a phytosterol-enriched product for orange juice, we find that no cannibalization effects exist with respect to its introduction. We also provide estimates of own-price and cross-price elasticities of the orange juice category using a synthetic demand system.
AB - The demand for functional foods has increased notably in recent years due to growing consumer interest in diet and health issues. Currently, the food industry is introducing many types of new food products with functional attributes. Consequently, cannibalization is a critical issue for firms that offer multiple products within a certain product category. The identification and assessment of cannibalization are integral factors when making strategic decisions about new product introductions. Using scanner data from Information Resources, Inc. (IRI), pertaining to a particular functional food, namely a phytosterol-enriched product for orange juice, we find that no cannibalization effects exist with respect to its introduction. We also provide estimates of own-price and cross-price elasticities of the orange juice category using a synthetic demand system.
KW - Cannibalization
KW - Functional foods
KW - Orange juice industry
KW - Phytosterols
KW - Synthetic demand system
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UR - http://www.scopus.com/inward/citedby.url?scp=84055200505&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:84055200505
VL - 38
SP - 153
EP - 165
JO - Agricultural and Resource Economics Review
JF - Agricultural and Resource Economics Review
SN - 1068-2805
IS - 2
ER -