Assessing the demand for a functional food product

Is there cannibalization in the orange juice category?

Yan Yuan, Oral Capps, Rodolfo M. Nayga, Jr

Research output: Contribution to journalArticle

10 Citations (Scopus)

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 languageEnglish
Pages (from-to)153-165
Number of pages13
JournalAgricultural and Resource Economics Review
Volume38
Issue number2
Publication statusPublished - 2009 Oct 1
Externally publishedYes

Fingerprint

orange juice
functional foods
foods
demand elasticities
phytosterols
scanners
new products
information sources
food industry
decision making
diet
Functional foods
Cannibalization
Food products

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 journalArticle

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