- Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi
- Cilt: 19 Sayı: 1
- Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model
Analyzing Brand-Level Chips Demand in the United States Using the Multinomial Logit Model
Authors : Merve Özbağ Keçeci
Pages : 155-180
Doi:10.17153/oguiibf.1347020
View : 157 | Download : 172
Publication Date : 2024-04-01
Article Type : Research
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 : Farklılaştırılmış Ürün Talebi, Cips Talebi, Multinomial Logit Model