A Demand System Analysis of Marketing Strategies for Apples and Pears in\ud the Conventional Supermarket Environment

This research examines how marketing strategies of produce managers affect\ud consumer expenditures for fresh apples and pears. The objective of this study is to\ud determine how display size, point-of-purchase material, product origin, product\ud information and display placement impact consumer expenditures for fresh apples\ud and pears. These variables were incorporated into a non-linear Almost Ideal Demand\ud System with share equations for Gala, Fuji, Red Delicious, Other Sweet Apples, Tart\ud Apples, and Pears. Forty-four weeks of data on weekly store sales were collected\ud from two grocery stores in the Portland, Oregon metropolitan area. Share influences\ud and elasticities are provided for price inputs and for other variables where\ud appropriate. Product origin, e.g. state and national, influenced consumers'\ud expenditures for Red Delicious apples and pears; it was insignificant in other share\ud equations. Product information, e.g. tart or sweet, only influenced expenditures on\ud apple varieties that are less familiar to the consumer. The size of point-of-purchase\ud material had a significant effect on expenditures as did display sizes to a lesser extent.\ud This research provided valuable information to produce managers and apple and pear\ud producers on factors that influence consumers' expenditures at the retail level