Market Demands for Bagged, Refrigerated Salads

Abstract

Sales of newly introduced bagged, refrigerated salads grew at over 50% annually, during 1994-95. Consumption of bagged salads displayed marked seasonality despite year-round availability and uniform quality at more stable prices than head lettuce. Using scanner data from 44 areas, a single-equation demand model incorporating the effects of weather on seasonal consumption is estimated. Statistical tests of aggregation indicate that weather-induced seasonality varies significantly across areas, as do own- and cross- price elasticities. Econometric results suggest more seasonality in eating by people living in more northern latitudes, a pattern also observed by psychiatrists studying eating disorders.

Keywords

• fresh-cut produce
• market demand
• perfect aggregation tests
• scanner data
• seasonality