The Picky Eater Premium?: The Effect of Product Portfolio Size on the Price Consumers Pay for Fresh Produce

Authors

Wayne Sandholtz, Brigham Young University
Dr. Joseph Price, Brigham Young University

Keywords

picky eater, fresh produce, food consumption, produce consumption, fruits and vegetables

College

Family, Home, and Social Sciences

Department

Economics

Abstract

The purpose of this project was to examine whether consumers who buy a wider variety of distinct fresh fruits and vegetables pay lower average prices for fresh fruits and vegetables, by substituting away from fruits and vegetables during price shocks. In order to answer this question, I used Nielsen Homescan data, which records all grocery purchases of a nationally representative sample of households. Using regression analysis, I found little direct evidence that households which buy a wider variety of fresh fruits and vegetables pay lower prices for them. In fact, I was surprised to find that in general, higher-variety household seemed to pay higher prices for fresh produce. However, by comparing the Nielsen data to national price index data, I also found evidence that in times of price shocks, high-variety households pay (very slightly) lower prices.

Recommended Citation

Sandholtz, Wayne and Price, Dr. Joseph (2013) "The Picky Eater Premium?: The Effect of Product Portfolio Size on the Price Consumers Pay for Fresh Produce," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 210.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/210