AN ANALYSIS OP CHANGES IN CONSUMER MILK PURCHASES IN TWO OHIO METROPOLITAN AREAS DISSERTATION Presented In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy In the Graduate School of The Ohio State University By RONALD HOWARD POLLOCK, B.Sc., M.Sc. « # * e * The Ohio State University 1959 Approved by Department of Agricultural Economics and Rural Sociology ACKNOWLEDGEMENTS The writer wishes to express his appreciation to those who helped make this study possible. To Dr. Glen H, Mitchell for his valuable counsel relative to collection and organization of the data. To Dr. Richard R. Newberg whose recommendations and advice concerning statistical limitations In this analy­ sis provided meaningful assistance. To Dr. George F. Henning under whose guidance, stimu­ lation and leadership the requirements preceding this study were completed and from whom the writer received helpful suggestions during the analysis of the study and preparation of the manuscript. To Dr. Mervin G. Smith and Dr. Virgil R. Wertz for their constructive suggestions after reading this manu­ script. Special thanks is expressed to Dr. Elmer F. Baumer for his patience, stimulation, encouragement and tireless efforts throughout the study. My deepest gratitude goes to my wife, Rosemary, and children, Sue, Angia, Lynn and James for their inspiration and sacrifice during the time this study was in progress. ii TABLE OF CONTENTS Page INTRODUCTION ....................................... 1 REVIEW OF PREVIOUS STUDIES ......................... 5 OBJECTIVES ......................................... 13 PROCEDURE ......................................... 11* DESCRIPTION OF MARKETS ............................. 17 DAYTON SAMPLES COMPARED ..................... 23 FINDINGS ........................................... 28 ANALYSIS ........................................... lj.6 THE FOLLOW-UP S U R V E Y ............... 78 SUMMARY ............................................ 83 CONCLUSIONS AND RECOMMENDATIONS .................... 88 APPENDIX ........................................... 91 BIBLIOGRAPHY ....................................... 149 AUTOBIOGRAPHY...................................... 157 111 LIST OP TABLES Table Page 1 Estimated Short-Run Price Elasticity of Demand for Fluid Milk in a Community in Eastern Connecticut for Three Periods in 19^8 and 191+9 .......................... 10 2 Range of Published Prices During Week of the Surveys for Homogenized Standardized 3.£# Milk in Two Ohio Markets According to Size and Type of Container and Source of Purchase, 1955 and 1958 ............... 20 3 Comparison of Selected Statistical Mea­ sures of Weekly Milk Purchases per House­ hold for 296 Old Survey and 300 New Survey Households, Dayton Metropolitan Area, 1958 2i+ 1+ Comparison of Selected Statistical Measures of Daily per Capita Purchases of Milk per Household for 296 Old Survey and 300 New Survey Households, Dayton Metropolitan Area, 1958 .............................. 25 5 Comparison of Weekly Milk Purchases by Source of Purchase for 296 Households (Old) and 300 Households (New), Dayton Metropolitan Area, 1959 .... 25 6 Comparison of Weekly Milk Purchases by Type of Container for 296 Households (Old) and 300 Households (New), Dayton Metropolitan Area, 1959 ................ 26 7 Comparison of Weekly Milk Purchases by Size of Container for 296 Households (Old) and 300 Households (New), Dayton Metro­ politan Area, 1959 ................... 26 6 Comparison of Weekly Milk Purchases by Type and Size of Container for 296 House­ holds (Old) and 300 Households (New), Dayton Metropolitan Area, 1959 ......... 27 9 Selected Statistical Measures of Weekly Milk Purchases, 335 Households, Cleveland Ohio, 1955-1958 ......................... 29 iv LIST OP TABLES (cont.) Table Page 10 Selected Statistical Measures of Weekly Milk Purchases. 296 Households, Dayton, Ohio, 1955-1958 ........................... 29 11 Distribution of 335 Cleveland and 296 Dayton Households, by Quantity of Milk Purchased Per Week for Use at Home, 1955-1958 ................................. 30 12 Selected Statistical Measures of Per Capita Dally Purchases, 335 Households, Cleveland Ohio, 1955-1958 ................. 31 13 Selected Statistical Measures of Per Capita Dally Milk Purchases, 296 House­ holds, Dayton Ohio, 1955-1958 ............. 31 1 i; Distribution of 335 Cleveland and 296 Dayton Households by Dally Per Capita Per Household Milk Purchases, 1955-1958 .. 32 15 Weekly Milk Purchases by Source of Pur­ chase, 296 Households, Dayton, Ohio, 1955 and 1958 .......................... 33 16 Weekly Milk Purchases by Source of Pur­ chase, 335 Households, Cleveland, Ohio, 1955 and 1958 ............................ 33 17 Weekly Milk Purchases by Type of Con­ tainers, 296 Households, Dayton, Ohio, 1955 and 1958 ............................ 35 18 Weekly Milk Purchases by Type of Con­ tainer, 335 Households, Cleveland, Ohio, 1955 and 1958 ........................... 35 19 Weekly Milk Purchases by Size of Con­ tainer, 296 Households, Dayton, Ohio, 1955 and 1958 ............................ 36 20 Weekly Milk Purchases by Size of Con­ tainer, 335 Households, Cleveland, Ohio, 1955 and 1958 ........................... 36 v LIST OP TABLES (cont.) Pape 21 Weekly Milk Purchases by Type and Size of Container, 296 Households, Dayton, Ohio, 1955 and 1958 ............................ 38 22 Weekly Milk Purchases by Type and Size of Container, 335 Households, Cleveland, Ohio, 1955 and 1958 ...................... 38 23 Number of Households by Size, 296 Dayton Area and 335 Households, Cleveland Area, 1955 and 1958 ............................ lj.0 Zk Number of Individuals by Age Groups, 296 Dayton Area and 335 Cleveland Area House* holds, 1955-1958 ......................... I4.I 25 Number of Households by Income Groups, 296 Dayton Area and 335 Cleveland Area Households, 1955-1958 .................... 1+2 26 Number of Households by Container Prefer­ ence Reported In 296 Dayton Area and 335 Cleveland Area Households, 1955 and 1958.. l+lj. 27 Households by Reported Reason for Buying Milk from a Store, 296 Dayton Area and 335 Cleveland Area Households, 1955 and 1958 ..................................... 28 Changes In Per Capita Milk Used at Home Within a Specific Group of 335 Households Cleveland, 1955-1958 ..................... 1+8 29 Changes In Per Capita Milk Used at Home Within a Specific Group of 296 Households Dayton, 1955-1958 ........................ ij.9 30 Average Household Income of Households Increasing, Remaining Constant and De­ creasing Per Capita Milk Purchases from 1955 to 1958, Cleveland and Dayton Areas . 51 31 Average Per Capita Purchases by Households Increasing, Remaining Constant or Decreas­ ing in Household Income from 1955 to 1958, Cleveland & Dayton Metropolitan Areas .... 52 vi LIST OF TABLES (cont.) Table Page 32 Changes In Income Per Household for Re­ spondents In Cleveland and Dayton from 1955 to 1958 .............................. 53 33 Average Dally Per Capita Milk Purchases Per Households by Changes In Household Size, Cleveland and Dayton Metropolitan Areas, 1955 to 1958 ....................... Sh 2k Relationship between Change In Household Size and Change In Per Capita Milk Pur­ chase Per Household, Cleveland and Dayton Metropolitan Areas, 1955 to 1958 ......... 56 35 Relationship Between Change in Total Milk Purchased per Household and Change in Per Capita Milk Purchased Per Household, Cleveland and Dayton Metropolitan Area, 1955 to 1958 ............................. 57 36 Relationship of Changes in Household Size and Changes in Household Income, Cleve­ land and Dayton Metropolitan Areas, 1955 to 1958 ............................. 59 37 Comparison of Average Quantity of Milk Used Per Week by Households Using Various Size and Type of Containers, 335 Households, Cleveland, Ohio, 1955-1956 .............. 61+ 38 Comparison of Average Quantity of Milk Used Per Week by Households Using Various Size and Type of Containers, 296 Households, Dayton, Ohio, 1955 & 1958 ................ 65 39 Comparison of 1955 Container Preference With 1958 Container Preference, 335 Households, Cleveland Area .............. 70 14.0 Comparison of 1955 Container Preference With 1958 Container Preference, 296 Households, Dayton Area .................. 70 14.1 Average Size of Household in Cleveland and Dayton for all Households Changing Their Stated Preference for Container Size 1955 to 1958 ............................. 72 vii LIST OP TABLES (cont.) Table Page 42 Number of Households by Size Indicating Preference for Specified Milk Containers, Cleveland Area, 1956 ...................... 73 43 Number of Households by Size Indicating Preference for Specified Milk Containers, Dayton Area, 1956 ......................... 73 1+4 Change In Reasons for Buying at Store Within 335 Households, Cleveland, Ohio, 1955-1958. 75 45 Change in Reasons for Buying at Store Within 296 Households, Dayton, Ohio, 1955-1958 ... 76 46 Distribution of 335 Cleveland and 296 Dayton Area Households by Magnitude of Change in Per Capita Milk Purchase for Use at Home from 1955 to 1958 ......................... 92 47 Changes In Total Milk Purchased at Home Within a Specific Group of 335 Households Cleveland, Ohio, 1955-1958 .............. 93 48 Changes in Total Milk Purchased at Home Within a Specific Group of 296 Households Dayton, Ohio, 1955-1958 .................. 93 49 Changes Reported in Household Income Within a Specific Group of 335 Households, Cleve­ land, Ohio, 1955-1958 .................... 94 50 Changes in Household Income Within