Current Issues in Economics of Food Markets: Exploring Food Purchase Behavior of Low-Income Households - How Do They Economize

摘要

This report compares food purchases by U.S. households of different income levels and finds that low-income shoppers spend less on food purchases despite some evidence that they face generally higher prices. Households can economize on food spending by purchasing more discounted products favoring private-label (generic) products over brand, pursuing volume discounts, or settling for a less expensive product (for example less lean beef) within a product class. A 1998 sample of foodstore purchase data shows that low-income households adhere to these practices when possible, but that the typically smaller size of foodstores in urban and rural locations may sometimes preclude them from doing so.