Consumer Heterogeneity in Yogurt Demand

Approach by a Hierarchical Bayesian Model

Abstract

The objective of this study is to analyze consumer heterogeneity in yogurt demand. We estimated a hierarchical Bayesian tobit model using scanner panel data. Additionally, we regressed the individual parameters obtained from the model to demographic attributes to capture the relationship between consumers' behavior toward yogurt and demographic attributes of households. The main results are as follows : first, the variance of each parameter in the hierarchical Bayesian model is large so the consumers' preference is heterogeneous. Second, consumers are aggressive in yogurt consumption. Third, the rising of consumers' age, existence of babies and increase in household income might increase yogurt demand.