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, Rodolfo M.
N1 - Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2009/10
Y1 - 2009/10
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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U2 - 10.1017/S1068280500003178
DO - 10.1017/S1068280500003178
M3 - Review 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 -