Research Article

Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model

Volume: 19 Number: 1 April 1, 2024
TR EN

Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model

Abstract

This study estimates demand for 52 chip brands using IRI scanner data. The multinomial logit model addresses dimensionality and endogeneity issues in demand estimation. All brands exhibit elastic demand, with own-price elasticities between -5.0412 and -1.4251, indicating high consumer responsiveness to price changes. Notably, tortilla chip brands are less elastic than potato chip brands. Baked chip brands fall under the category of highly elastic brands. Funyuns has the most elastic demand, while Calidad Triangle has the least elastic demand. Cross-price elasticities (0.0010 to 0.0263), exhibiting the IIA property, indicate that consumers have brand loyalty, as seen by comparisons with own-price elasticities' magnitudes.

Keywords

References

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Details

Primary Language

English

Subjects

Applied Microeconometrics

Journal Section

Research Article

Publication Date

April 1, 2024

Submission Date

August 21, 2023

Acceptance Date

October 28, 2023

Published in Issue

Year 2024 Volume: 19 Number: 1

APA
Özbağ Keçeci, M. (2024). Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model. Eskişehir Osmangazi Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 19(1), 155-180. https://doi.org/10.17153/oguiibf.1347020
AMA
1.Özbağ Keçeci M. Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2024;19(1):155-180. doi:10.17153/oguiibf.1347020
Chicago
Özbağ Keçeci, Merve. 2024. “Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model”. Eskişehir Osmangazi Üniversitesi İktisadi Ve İdari Bilimler Dergisi 19 (1): 155-80. https://doi.org/10.17153/oguiibf.1347020.
EndNote
Özbağ Keçeci M (April 1, 2024) Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi 19 1 155–180.
IEEE
[1]M. Özbağ Keçeci, “Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model”, Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol. 19, no. 1, pp. 155–180, Apr. 2024, doi: 10.17153/oguiibf.1347020.
ISNAD
Özbağ Keçeci, Merve. “Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model”. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi 19/1 (April 1, 2024): 155-180. https://doi.org/10.17153/oguiibf.1347020.
JAMA
1.Özbağ Keçeci M. Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2024;19:155–180.
MLA
Özbağ Keçeci, Merve. “Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model”. Eskişehir Osmangazi Üniversitesi İktisadi Ve İdari Bilimler Dergisi, vol. 19, no. 1, Apr. 2024, pp. 155-80, doi:10.17153/oguiibf.1347020.
Vancouver
1.Merve Özbağ Keçeci. Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2024 Apr. 1;19(1):155-80. doi:10.17153/oguiibf.1347020