An Empirical Analysis of the Effects of Households’ Demographic and Socioeconomic Factors on Their Choice of Ethnic Restaurants in the United States

Document Type

Thesis

Degree Name

Master of Science (MS)

Department

Ag Science and Natural Resources

Date of Award

Summer 2022

Abstract

This study uses a multinomial logistic regression model to empirically identify household demographic and socioeconomic characteristics as well as restaurant characteristics that affect the probability of households choosing an ethnic restaurant (American, Asian, European, Mexican, and other) in the United States. The data underlying the analysis are derived using the information from the National Household Food Acquisition and Purchase Survey conducted between April 2012 and January 2013. The empirical findings suggest that such factors as the unit cost on away-from-home food items (i.e., price), region of residence, primary respondent’s ethnicity, race, education level, marital status, and employment status as well as such restaurant characteristics as availability of loyalty program and presence of coupons significantly affect the probability of households choosing a particular ethnic restaurant in the United States. The empirical findings furnished by this study are of importance to ethnic restaurant marketers in their effort to divide the market into segments and develop effective marketing strategies in an attempt to retain the current customers and expand their traditional customer base, which ultimately will lead to an increase in market share. Also, the finding associated with the inelastic response on part of consumers in the form of decreasing probability in response to an increase in price, can serve as basis to restaurant owners (other ethnic restaurants) to consider a price increase for short-run revenue maximization.

Advisor

Rafael Bakhtavoryan

Subject Categories

Agribusiness | Business

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