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Abstract

This paper examines the effects that gasoline prices, climatic conditions, and the Powerball jackpot size have on weekly scanned-data results of NA beverage sales (unit and dollar sales) at U.S. convenience stores from 2010-2016:Q1. The results indicate that the Powerball lottery jackpot has no statistically significant effect on the total number of NA beverages sold at convenience stores – no matter how large the weekly jackpot becomes. Similarly, regardless of how inexpensive gasoline becomes, it too has no definitive effect on the total number of NA beverages sold at convenience stores. My research supports the conclusion that the average NA beverage price, the climatic condition (in terms of Cooling Degree Day), and the payday-week effect have the greatest impact on weekly NA beverage consumption at U.S. convenience stores. An examination of NA beverage subcategories finds that the Powerball jackpot has a significant impact on ‘still beverage’ sales when the previous weeks’ jackpot exceeds $150 million. Similarly, the previous weeks’ jackpot must exceed $700 million to significantly impact sales of ‘sugar-sweetened beverages’ (SSB). For every one-cent increase in the national average NA beverage price there results in roughly a 5.5 million unit decrease in the total number of beverages sold. Likewise, a national average weekly increase of only ten cooling degree days (CDD) increases the number of NA beverage units sold weekly by approximately 2.6 million.

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