A discrete/continuous model of fruit promotion, advertising, and response segmentation

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

Commodity marketing managers are demanding an increasingly detailed description of their customers in order to make more efficient use of their marketing budgets. This study uses a purchase-occasion, household panel data set to investigate consumers’ discrete choice among varieties of apples and their continuous decision of how much to buy. We segment households based on their elasticities of response to several marketing variables: price, promotion, and advertising using a k-means clustering algorithm. Describing each of these segments according to their demographic attributes provides the type of information required to target particular groups of similar consumers, which in turn allows for a much more effective and efficient use of scarce marketing dollars.

Original languageEnglish (US)
Pages (from-to)179-196
Number of pages18
JournalAgribusiness
Volume16
Issue number2
DOIs
StatePublished - Mar 2000
Externally publishedYes

ASJC Scopus subject areas

  • Food Science
  • Geography, Planning and Development
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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