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Measuring Price Differentials in Food Retailing

This study aims to measure price differentials in food retailing and assess their impact on food availability, affordability, and access. It examines determinants of food spending patterns, develops data collection methods to measure food availability and price, and explores the variations in price premiums across neighborhoods and retailer types. The study employs regression analysis, consumer expenditure survey data, and other methods to provide robust measures and visual tools to communicate detailed price information effectively and accessibly.

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Measuring Price Differentials in Food Retailing

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  1. Measuring Price Differentials in Food Retailing Joseph Llobrera Gerald J. Friedman Fellow in Nutrition and Citizenship

  2. Food Environment Availability (also variety and quality) Affordability (budget constraints) Access (physical) Individual or area Food deserts: area with limited access to affordable and nutritious food

  3. Current methods Proximity, density of food stores Market Baskets Thrifty Food Plan Community Food Security Assessment Toolkit 87 food items Nutrition Environment Measures Survey 10 food categories or food items

  4. Significance Methodological choices Selecting areas Selecting retailers Selecting foods Missing values Aggregating prices How to communicate and display detailed price information effectively and accessibly

  5. Significance NCI/NIH 2007: robust measures are needed to assess effect of community food environment on individual diet ERS 2009: improved methods are needed to measure access levels, availability, and prices of foods faced by individuals and areas

  6. Aims Aim 1: Determinants of food spending patterns Aim 2: Data collection method to measure food availability and price Aim 3: Modifications and extensions

  7. Aim 1: Hypotheses Aim 1: Examine determinants of food spending patterns Hypothesis 1A: Fulltime Employment --> fewer perishable or unprocessed foods (fresh fruits and vegetables or unprocessed meats) Hypothesis 1B: Fulltime Employment --> different frequency and size of food purchases

  8. Aim 1: Methods Consumer Expenditure Survey Diary Data Detailed food expenditures Outcomes: Food spending amount Food shopping frequency

  9. Aim 1: Methods Explanatory variables (X) Full-time employment Family size Number of children Vehicle ownership Consumer unit control variables (Z) Income SNAP participation Race/ethnicity

  10. Aim 1: Analysis Regression analysis OUTCOME =0+ 1 X + 2 Z + e

  11. Aim 2: Hypotheses Aim 2: Develop data collection method to measure food availability and price Hypothesis 2A: Food availability is lower, while food prices are higher, in lower-income neighborhoods compared to higher-income neighborhoods Hypothesis 2B: Food availability is greater, while food prices are lower, at larger retailers compared to smaller retailers

  12. Aim 2: Methods Select Geographic Units Select Food Retailers Select Food Items

  13. Selecting Geographic Units

  14. Selecting Retailers Source: SNAP Benefit Redemption Division, 2009 Annual Report

  15. Selecting Food Items Test a few different methods and market baskets (including for Aim 3) Availability Lowest cost variety Highest cost variety Variety with most shelf space

  16. Aim 2: Analysis Develop a food price index Compare price level using different market baskets By neighborhood (hhd income level) By type of retailer

  17. Aim 2: Analysis

  18. Aim 3: Hypotheses Aim 3: Modifications and extensions Hypothesis 3: The price premium for packaging and convenience varies more across neighborhoods than across retailer type.

  19. Aim 3: Methods and Analysis Similar analysis to Aim 2 Different market basket depending on empirical question

  20. Challenges/Limitations Cooperation and trust of smaller retailers Boston area only Mainstream food retailers Seasonality No household survey

  21. Novel Contributions Rigorous, systematic and transparent method Sampling methods Use of weights Development of graphs, maps and other visual tools to show variability in food availability and price

  22. Thank you very much! Questions? Comments? Please email me at Joseph.Llobrera@tufts.edu

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