This study investigated main factors affecting fluid milk purchasing sources of households in Turkey. From the collected household survey data, a multinomial logit model was estimated to analyze households' choices among unpacked, processed and processed-unpacked fluid milk, alternatives within the utility maximization framework. The results indicated that number of children, household size, educational level and income were among the important household characteristics that influence fluid milk purchasing behaviors. In particular, processed fluid milk purchases were made by households with high-income levels, higher educated and small households in comparison to unpacked fluid milk purchases. On the other hand, results revealed that response of households to price difference band other usages of fluid milk significantly stimulate households to choose unpacked and processed-unpacked alternatives over the processed fluid milk choice. The implications of these results for government agencies and fluid milk processing firms in developing countries are discussed. (C) 2003 Elsevier Ltd. All rights reserved.