WHAT IS IT CONSUMERS REALLY WANT AND WHY? THE CASE OF FAT IN MILK
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In this paper we investigate preferences for fat in milk through a structural characteristics
model. The data includes information about daily purchases and social and demographic
characteristics of approximately 2500 households. We find that consumers who prefer milk
with a very high fat content can be reached both by information and prices, while consumers
who prefer milk with a moderate to high fat share are not influenced by information, but are
price sensitive. This is of great importance since these households drink a lot of milk and
thereby get a considerable amount of fat through milk