Promotion and fast food demand

Timothy Richards, Luis Padilla

Research output: Contribution to journalArticle

23 Scopus citations

Abstract

Many believe that fast food promotion is a significant cause of the obesity epidemic in North America. Industry members argue that promotion only reallocates brand shares and does not increase overall demand. We study the effect of fast food promotion on market share and total demand by estimating a discrete/continuous model of fast food restaurant choice and food expenditure that explicitly accounts for both spatial and temporal determinants of demand. Estimates are obtained using a unique panel of Canadian fast food consumers. The results show that promotion primarily increases demand and has a smaller effect on restaurant market shares.

Original languageEnglish (US)
Pages (from-to)168-183
Number of pages16
JournalAmerican Journal of Agricultural Economics
Volume91
Issue number1
DOIs
StatePublished - Jan 19 2009

Keywords

  • Consumer demand
  • Discrete/continuous choice
  • Fast food
  • Pricing strategy
  • Promotion
  • Spatial modeling

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Promotion and fast food demand'. Together they form a unique fingerprint.

  • Cite this