Consumer Demand for New Reduced‐fat Foods: An Analysis of Cheese Expenditures

Abstract

The dairy products industry is adjusting the types of products being marketed by increasing the availability of reduced‐fat foods. The desire of consumers to purchase foods with lower fat content is affecting the cheese market with the introduction of recently developed reduced‐fat cheese varieties. Econometric models of cheese expenditures for three specific cheese types are estimated, which incorporate censoring of cheese expenditures and the interrelationship between expenditures of full and reduced‐fat varieties.