Modeling A Household's Choice among Food Store Types

Abstract

A household's choice among the different types of food stores to patronize depends on characteristics of both the stores and the household. Store characteristics include prices and promotional deals. Two types of household characteristics are important: the household's specific purchase history and demographics. This study proposes a new multinomial logit model to account for these choice determinants. In an empirical application to fluid milk, we find that store characteristics and both household demographics and purchase history are significant determinants of a household's store‐type choices and must all be included in a choice model.