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Analyzing Household Food Expenditure Patterns On Trips and Vacations: a Tobit Model

Purdue University

Based on the theory of consumer behavior, a tobit modeling procedure is applied to investi gate the relationship between vacation food expenditures and household sociodemo graphic characteristics. The resulting model identifies numerous determinants of spending variations of households, including earned and unearned income, education, occupation, number of children, age, marital status, ethnicity, employment status, and seasonality. The important and unique finding of the study is the decomposition of total effects on vacation food spending into current demand and potential market participation. This study also dif ferentiates itself from previous food consumption research in that it uses national survey data and examines travel-related food spending patterns of households on vacation trips. The implications of the results are discussed in the context of hospitality and tourism re search and marketing.

Key Words: tobit modeling • vacation spending • food expenditure • demographics and socioeconomics • marketing.

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