Consumption of dairy products in the UAE: A comparison of nationals and expatriates

The variables: age, income, education, number of children, and a dichotomous dummy variable for nationality were used to explain the consumption behavior of dairy products: fresh milk, butter, cheese, yoghurt, powdered milk, condensed milk, cream, and ice cream in the urban centers of Al-ain, Dubai, and Abu Dhabi. Results suggest different determinants for consumption behaviors of nationals and expatriates as well as different determinants along the income range of the sample. Estimates for the expenditure elasticity were relatively higher for lower income groups when unreported income is taken into consideration in interpreting the results. Differences in consumption behavior bear an important implication to marketing and promotion of dairy products: different strategies that incorporate the different consumption determinants are perhaps necessary for the different ethnic groups.