Promotion and fast food demand

Timothy Richards, Luis Padilla

Research output: Contribution to journalArticle

22 Citations (Scopus)

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 - 2009

Fingerprint

Fast Foods
fast foods
market share
Restaurants
fast food restaurants
food purchasing
restaurants
obesity
Health Expenditures
North America
industry
Industry
Obesity
Food
Fast food
Food demand
Market share

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

Cite this

Promotion and fast food demand. / Richards, Timothy; Padilla, Luis.

In: American Journal of Agricultural Economics, Vol. 91, No. 1, 2009, p. 168-183.

Research output: Contribution to journalArticle

Richards, Timothy ; Padilla, Luis. / Promotion and fast food demand. In: American Journal of Agricultural Economics. 2009 ; Vol. 91, No. 1. pp. 168-183.
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