Follow the Leader: Adoption Behavior in Food Retailers’ Decision to Offer Fresh Irradiated Ground Beef

During the 14-month period from May 2002 to June 2003, approximately 10 percent of U.S. supermarkets began to offer fresh irradiated ground beef under the stores’ own labels. Using a survey of supermarket store managers from this time period, this paper investigates the factors that influenced new product offerings and adoptions. Results from the adoption model show that factors associated with competition and structure in the food retailing industry play a strong role in the decision. Among other results, we find that variables relating to a competitor’s adoption status and proximity significantly affect a store’s decision to offer fresh irradiated ground beef. Funding for this study was provided in part by a grant from the National Research Initiative Competitive Grants Program, USDA. The authors wish to thank the Food Industry Center at the University of Minnesota and Mitsuko Chikasada for statistical assistance. Copyright 2005 by Edward C. Jaenicke. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.