Jeremy W Bray1, Brett Loomis, Mark Engelen. 1. RTI International, 3040 Cornwallis Road, P.O. Box 12194, Research Triangle Park, North Carolina 27709, USA. bray@rti.org
Abstract
OBJECTIVE: We estimated the strength and direction of the association between product characteristics (beer type, package size, and brand name) and market-area socioeconomic characteristics, and promoted sales of beer in grocery stores. METHOD: Supermarket scanner data from 64 market areas across the United States over 5 years were used to estimate regression models of the share of beer sales that are promoted, controlling for beer price, packaging, and type; and for market-level age, race/ethnicity, income, unemployment rate, and percentage of the population living in an alcohol control state. RESULTS: Large-volume units, such as 144-oz and 288-oz packages, are more likely to be promoted than smaller package sizes. Malt-liquor beverages are less likely to be promoted than non-malt-liquor beverages. Age, race/ethnicity, income, and geographic location of the market area are not significantly related to promoted beer sales. CONCLUSIONS: Marketing research has shown that in-store merchandising and promotions can substantially increase beer sales and that purchasing large package sizes may increase total consumption. Our results suggest that high levels of promoted sales for large-volume beer packages may result in increased beer consumption.
OBJECTIVE: We estimated the strength and direction of the association between product characteristics (beer type, package size, and brand name) and market-area socioeconomic characteristics, and promoted sales of beer in grocery stores. METHOD: Supermarket scanner data from 64 market areas across the United States over 5 years were used to estimate regression models of the share of beer sales that are promoted, controlling for beer price, packaging, and type; and for market-level age, race/ethnicity, income, unemployment rate, and percentage of the population living in an alcohol control state. RESULTS: Large-volume units, such as 144-oz and 288-oz packages, are more likely to be promoted than smaller package sizes. Malt-liquor beverages are less likely to be promoted than non-malt-liquor beverages. Age, race/ethnicity, income, and geographic location of the market area are not significantly related to promoted beer sales. CONCLUSIONS: Marketing research has shown that in-store merchandising and promotions can substantially increase beer sales and that purchasing large package sizes may increase total consumption. Our results suggest that high levels of promoted sales for large-volume beer packages may result in increased beer consumption.
Authors: Christopher J Ruhm; Alison Snow Jones; Kerry Anne McGeary; William C Kerr; Joseph V Terza; Thomas K Greenfield; Ravi S Pandian Journal: J Health Econ Date: 2012-08-31 Impact factor: 3.804