| This thesis studies the household demand for non-alcoholic beverages in Canada, using Canadian Family Food Expenditure Survey data for 1996 and 2001. Informational variables, such as generic milk advertising expenditures, milk brand advertising expenditures, and various types of beverage health information indices, and demographic variables are incorporated into the beverage demand systems, in order to uncover the factors that influence consumers' beverage consumption patterns.; Two forms of beverage demand system were estimated to examine the non-alcoholic beverage consumption. One is a flexible (Lewbel, 1989) general beverage demand system with the five major beverage types included in the model. The other is a blockwise dependent beverage demand system with the three types of milk disaggregated as individual expenditure shares.; The results indicate that informational variables are influential in consumers' beverage purchasing decisions. Milk generic advertising expenditures were successful in increasing consumer demand for fluid milk. Health information, which is consistent and based on sound scientific evidence, may change consumers beverage consumption, as they become increasingly health conscious. Results by sub-samples with different demographic characteristics provide useful information for developing marketing strategies as well. |
