The Consumption Choice of Organics: Store Formats, Prices, and Quality Perception –A Case of Dairy Products in the United States - Organic Food and Agriculture: New Trends and Developments in the Social Sciences - page 11

and

FL h,B = 1 − FL h,A − FL h,C . (5b)
where NV h,f is the number of visits to format f stores by household h during the initialization
period. This index reveals the shopper's preference toward a specific format due to probably
the familiarity about the store layout, the general prices and assortments, and the
convenience and quality of service, based on his/her past shopping experience.
% Discount . We use household discount use rates, calculated from the household purchase
information during the initialization period, to capture their preference between
promotional pricing (HiLo) and everyday low pricing (EDLP). We expect a household with
a high rate would prefer the format in which stores/chains use HiLo pricing instead of
EDLP, and otherwise for low-discount-use households.

Variable Definition 2005-6 2007-8

Milk

1.94 1.92

Y (choice) 1 if organic, 0 if conventional

0.01 0.01

price premium organic price − conventional price ($)

0.23 0.18

%discount 1 if any discount (sale or coupon) applied, 0 otherwise

0.23 0.19

%organic in other % of organic/total expense in other items of the trip

Eggs

1.98 1.98

Y (choice) 1 if organic, 0 if conventional

0.23 0.19

price premium organic price − conventional price ($)

0.27 0.15

%discount 1 if any discount (sale or coupon) applied, 0 otherwise

0.29 0.29

%organic in other % of organic/total expense in other items of the trip

0.18 0.22

loyalty (value-oriented)

% of trips that household made to the format (value-
oriented, supermarkets, high-end) during the
initialization period

0.81 0.77

loyalty (supermarkets)

0.01 0.01

loyalty (high-end)

5.05 5.63

days between trips number of days between two shopping trips

9.16 9.39

distance the distance between consumer's home and store

total transaction amount recorded for the shopping
trip

23.10 16.99

total spending

6.38 6.89

income household income (in $1,000)

2.34 2.39

household size number of persons in the household

0.89 0.89

college educated 1 if householder is college educated, 0 otherwise

0.57 0.57

married 1 if married householder, 0 otherwise

0.06 0.11

preschool children 1 if family has child(-ren) aged <6, 0 otherwise

0.23 0.24

school-age children 1 if family has child(-ren) aged 6 ~18, 0 otherwise

0.24 0.23

elderly 1 if householder is aged 65 and above, 0 otherwise

Table 4. Description of Variables for Consumer Panel Households, 2005-2008