In an economy characteristics by keen competition among commodities for consumers' disposable income, the per capita demand for a product may shift over a period of time. With a decline in demand (a shift to the left of the demand curve) for a commodity, the total consumption may be less than in previous years even with an expanding population. In the past four decades the trend in per capita consumption of apples has been downward. This downward trend is evident when the per capita rates of apple consumption are compared for various time periods during these years. In fact, the trend in per capita consumption of apples has been steadily downward from 1909 to 1953 as shown by the averages for each five-year period beginning with 1909¹. The trend in total yearly consumption of apples in the United States has likewise been downward. However, this decline has been less pronounced than per capita consumption declines because of the counteracting influence of population increases in this country. Shifts in demand for a commodity create economic problems in both production and marketing. These problems are especially acute for products such as apples, which require large fixed investments of capital for production and handling. Apple production initially requires large outlays of capital for land, labor, and nursery stock. It is approximately eight years before an apple tree is brought into production and the orchardist begins to realize a return on his investment. During these formative years, and more especially in later years, the land planted in trees is not easily and readily shifted into production of other commodities. Likewise, the special equipment and storage facilities necessary for efficient marketing of apples represent a sizable investment of capital of a specialized nature that is not easily and readily adaptable for other uses. In order to make production and marketing decisions that are economically sound, people in the apple industry need adequate information on changes in consumer reactions to apples. To be adequate, this information must not only reflect the changes in the movement of apples moving into consumption, but must also provide information concerning the effectiveness of current merchandising practices on apple sales. The best source of this information is the market place where consumer preferences are registered. / Master of Science