A DEMAND ANALYSIS FOR CRUSTACEANS AT THE U.S. RETAIL STORE LEVEL |
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| Authors: | Giap V. Nguyen Terrill R. Hanson Curtis M. Jolly |
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| Affiliation: | 1. School of Business and Economics, Tan Tao University , Duc Hoa , Long An , Vietnam giap.nguyen@ttu.edu.vn;3. Fisheries and Allied Aquaculture Department , Auburn University , Auburn , Alabama , USA;4. Agricultural Economics and Rural Sociology Department , Auburn University , Auburn , Alabama , USA |
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| Abstract: | This study used a LA/AIDS model to estimate demand system for crustacean species, shrimp, crab, crawfish and lobster at the U.S. retail store level. Shrimp demand is price elastic; crab, crawfish and lobster are price inelastic. Shrimp price significantly affects market shares of crustacean products. Shrimp has more substitutes than other crustaceans, and lobster has less substitutes than others. The demand for crab and lobster grow faster than the demand for shrimp and crawfish when expenditure increases. Promotion has positive effects on market shares and sales volume of own products and negative effects on cross-products. Shrimp price-reduction promotion strategies will be effective in term of raising shrimp sales value. Marketing programs that increase consumers’ marginal utility with an additional small increase in the selling price of crab, crawfish and lobster products will be feasible, and bring higher sale values. |
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| Keywords: | crustacean demand price and expenditure elasticity promotion |
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