Functional Foods as Differentiated Products: the Italian Yogurt Market

A. Bonanno

Research output: Contribution to journalArticleAcademicpeer-review

26 Citations (Scopus)

Abstract

In spite of the growing consumers' interest for functional foods, the knowledge regarding the demand for these products and their profitability is limited. Adapting the LA/AIDS (Linear Approximated–Almost Ideal Demand System) model by means of Pinkse, Slade and Brett's distance metric method (2002), this article studies demand, substitution pattern, and profitability of conventional and functional alternatives inside the yogurt category in Italy. Results indicate that, in the yogurt market, functional alternatives' demand is often less elastic than that of their conventional counterparts, that brand loyalty plays a key role, and that the profitability of the functional alternatives is, on average, larger than that of conventional ones.
Original languageEnglish
Pages (from-to)45-71
JournalEuropean Review of Agricultural Economics
Volume40
Issue number1
DOIs
Publication statusPublished - 2013

Keywords

  • consumer acceptance
  • empirical-analysis
  • demand system
  • competition
  • valuation
  • industry
  • europe
  • price
  • power
  • model

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