Empirical analysis of the Nielsen (2005) purchase
data for 3 ice cream categories suggested that regional
and demographic characteristics may play a role in
determining estimates of aggregate national demand
price and income factors that influence demand for the
products. Results revealed that price and income were
the main driving force in determining the demand for
bulk ice cream, frozen novelties, and ice milk or sherbet.
Estimates from the censored translog demand system
provided similar results for the own-price to those that
Maynard and Venkat Narayanan (2002) reported. The
relative elasticity of the own-price elasticities suggested
that ice cream manufacturers and marketers must carefully
evaluate any price-changing strategies. Our expenditure
elasticity for bulk ice cream was elastic and
somewhat comparable to that reported by Veeman and
Peng (1997). As noted, it is not possible to make direct
comparisons between the results derived in this study
and the results from other analytical works. However,
our results do seem comparable to some of the previously
derived results. Ice cream and frozen dessert products
make up an important and, over time, relatively
stable component of the United States dairy industry.
Ongoing efforts to examine consumer demand for these
products will assist milk producers, dairy processors
and manufacturers, and dairy marketers as they face
changing consumer responses to food and diet issues.