nep-mkt New Economics Papers
on Marketing
Issue of 2011‒03‒05
eighteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Modeling the Impact of New Information on Consumer Preferences for Specialty Meat Products By Wang, Xi; Curtis, Kynda; Moeltner, Klaus
  2. Is there Need for more Transparency and Efficiency in Causeârelated Marketing By Langen, Nina; Grebitus, Carola; Hartmann, Monika
  3. Short Chain in FVG Region: An Evaluation of the Customer Satisfaction at the âFarmerâs Shopping Pointsâ By Rosa, Franco
  4. Consumer willingness to pay for poultry products from biosecure farms in Bali By Yusuf, RP
  5. Customer Communication of Regional Quality Efforts: A Case From the Grain Sector By Meyer, Christian H.; Fritz, Melanie; Schiefer, Gerhard
  6. Transparent Food and Consumer Trust By Kriege-Steffen, Astrid; Boland, Hermann; Lohscheidt, Julia; Schneider, Flurina; Stolze, Matthias
  7. The Overall Significance of Attributes and Attributesâ Levels on Fresh Fruit Choice By Groot, Etienne; Albisu, Luis Miguel
  8. Price discrimination and competition in two-sided markets: Evidence from the Spanish local TV industry By Gil, Ricard; Riera-Crichton, Daniel
  9. Naturalness and Consumer Choices: The Case of Microfiltered Milk By Coppola, Adele; Verneau, Fabio
  10. Consumers' attitude towards farmers' markets: an explorative analysis in Tuscany By Alessio Cavicchi; Benedetto Rocchi, Matteo Baldeschi
  11. Meat Standards Australia as an Innovation in the Australian Beef Production and Marketing System By Griffith, Garry; Thompson, John; Polkinghorne, Rod; Gunner, Richard
  12. Evaluation of the effects of changes in regulatory policies on consumers perception: the case of designations of origin in the wine common market organisation By Chiodo, Emilio; Casolani, Nicola; Fantini, Andrea
  13. The Relationship between Innovation and Marketing in SMEs in the EU Food Sector By Banterle, Alessandro; Cavaliere, Alessia; Stranieri, Stefanella; Carraresi, Laura
  14. Loyalty discounts By Ioana Chioveanu; Ugur Akgun
  15. Private Labels: A Sign of Changing Times By Haas, Rainer; Weaver, Robert D.
  16. The Australian Wool Industry: A hedonic pricing analysis of the factors affecting price of Australian wool By Gibbon, Candice; Nolan, Elizabeth
  17. Local Food Marketing: Factors for Growth of Small Agriâfood Businesses in the UK By Hingley, Martin; Boone, Julie; Haley, Simon
  18. Comparative marketing performance between the Peruvian Cooperatives and the Intermediaries: Acopagro cooperative vs. Intermediaries- a Case Study By Higuchi, A; Moritaka, M; Fukuda, S

  1. By: Wang, Xi; Curtis, Kynda; Moeltner, Klaus
    Abstract: As the demand for organic and natural food grows in the U.S., studies show that consumers would and do pay more for these foods than their traditional counterparts. However, the question remains as to whether consumers really understand the differences between organic and natural products versus common products. The USDA provides an official definition of organic, but there is no official definition or certification for natural products. The general lack of knowledge among consumers concerning organic and natural products can be misleading and hence, there is a need for a better understanding of how consumer pre-existing knowledge and new information regarding organic and natural products influences consumer purchasing behavior. In this study, we research the effect of providing consumers with information regarding organic and natural production processes in four separate stages on their willingness to pay (WTP) for various natural/organic meat products. Through the use of survey data collected in-person during the fall of 2007 Nevada, in which 597 surveys were completed, we examine the impact of consumer perceived knowledge of organic and natural grass-fed production processes on their WTP, whether or not new information/knowledge will modify their WTP, and the degree of modification across meat types and cuts. Meats examined vary from high-end to low-end cuts and across various meat types, such as pork and beef. The modeling will include a multinomial probit model to measure WTP and also consider the modeling issues that arise when updated preferences are included. The results of this study will be important for researchers looking to model updated consumer preferences. The purpose of our research is twofold. First, we wish to observe whether or not advertising and other promotional methods truly influence consumer demand and willingness to pay for these specialty meat products. These results will likely be important to the role of marketing and the way in which information is provided to consumers on organic and natural production methods and the potential positive effects of those methods. Additionally, the paper will show how consumers purchasing experiences and pre-existing knowledge might influence their reaction to the same information.
    Keywords: Marketing,
    Date: 2011
  2. By: Langen, Nina; Grebitus, Carola; Hartmann, Monika
    Abstract: âGrowing awareness among consumers about sustainability issues â ranging from recycling to fair wages for workers â are starting to shape consumer buying patternsâ (Partos 2009). Especially for conscious consumers ethical and sustainable consumption are becoming mainstream. With regard to ethical consumption the popularity is shown for instance by a growing relevance of Causerelated Marketing (CrM) campaigns in Germany. CrM is an increasingly applied marketing tool, where product purchase leads to targetâoriented donations regarding a designated cause â promoted on the product by label. However, research reveals that German consumers are sceptic with regard to the amount of money spent and have doubts towards unselfish motives of firms. At present little information is provided in CrM campaigns on how much of the sales price is spent on the âcauseâ by the respective organization. If the gap between the sum consumers assume to be contributed and the amount really spent by the companies is too large this could lead to mistrust among consumers once they become aware of this. In the long run, this might decrease willingness to pay for those products in general. Also, firmsâ reputation could be harmed (see e.g. Webb and Mohr 1998). Against this background, we aim to answer the question of (1) how much consumers assume to be contributing to the âcauseâ by purchasing the respective product and (2) whether this information is of relevance for the consumer. We investigate (i) whether consumers want products to carry a label indicating the percentage or absolute amount of money being spent on the âcauseâ, (ii) how much money should be contributed to the âcauseâ in the case of CrM, and (iii) how much consumers think companies do actually spend on the âcauseâ. In this regard, we conducted a consumer survey (n=217) in Germany in 2009. Results show that (i) consumers want to be able to evaluate the efficiency of the CrM donation. 71% want this information given in percent and 63% would like to know the exact amount of money reaching the addressee. (ii) Regarding CrM results show that 46% of respondents would pay 5.00⬠for a pound of CrM coffee if they can be sure that 20% reaches the âcauseâ. At the same time (iii) 54% of respondents believe that a maximum of 6% of the CrM price premium reaches the âcauseâ. Overall, consumers desire transparency with regard to CrM. Hence, our study enables marketers to develop efficient and effective consumerâoriented communication strategies.
    Keywords: Causeârelated Marketing, donations efficiency, transparent labelling, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Research Methods/ Statistical Methods,
    Date: 2010–10
  3. By: Rosa, Franco
    Abstract: Farmer market, farmer shops, milk dispenser, 0âKm are some of the new born initiatives for trading agricultural products at (or near) the farm gate, now spreading in EUâUSA; their purpose is to offer to the farmers the chance to trade directly their products, and offer to the consumers new shopping opportunities alternatives to conventional food marketing outlets. This study was addressed to test the customer satisfaction at the farmersâ shops created by a farmer cooperative. The experiment was performed in Friuli VG a NorthâEast region of Italy, with a survey using a questionnaire submitted to a number of customers randomly selected at the end of their shopping. The customer satisfaction (CS) was evaluated with the SERQUAL procedure consisting in measuring the discrepancy between consumerâs perception and expectation of their shopping experience. The results suggested the following observations: the majority of customers was over 50âs, with an income less than 20 thousand â¬; they appreciated the variety and origin of the products and criticized the scarcity of space inside the shopping, parking and payment facilities. The frequency of shopping varied from once or twice a week to once a month while the average expenditure at farmersâ shops varied between 20â25 ⬠per visit. The usual food shopping was made at different market stores (from two to four) but most of the food budget was spent at the LD (Large distribution). Eight different consumerâs profiles were elaborated based on the results of the CS using the cluster analysis. Compared to other retailing facilities, consumers generally expected to find a better food quality, lower prices and were not strongly concerned about brand and packaging strategies, more important at the LD shopping. Quality, freshness and courtesy were the mostly appreciated attributes of this shopping experience, while critics were addressed to the scarcity of space inside the shops, difficulties in parking, payment facilities and market visibility
    Keywords: Farmer markets, short chain, direct selling, customer satisfaction, shopping point, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  4. By: Yusuf, RP
    Abstract: This study explores consumer perceptions and willingness to pay for clean and safe poultry products, particularly chicken meat and eggs, in Bali. The study also analyses the correlation between factors associated with the consumerâs purchase decision. Four high-end markets in Denpasar were chosen and 80 respondents were randomly selected in order to explore these issues. Nine attributes were used to define clean and safe poultry products, while five variables were used to explore the correlation between consumer characteristics and their purchase decision. The results show that consumers have a good understanding of clean and safe poultry products. They are aware how the product should appear physically, and they are willing to spend up to an extra Rp.5,0001 for whole chicken and Rp.10,000/kg for eggs. From the five consumer characteristic variables tested, only age and income have strong correlation with consumer purchase decisions. This information is useful for poultry producers as they seek to produce the type of product required by the supermarket consumer.
    Keywords: Food Consumption/Nutrition/Food Safety,
    Date: 2011
  5. By: Meyer, Christian H.; Fritz, Melanie; Schiefer, Gerhard
    Abstract: Usually, marketing communication efforts in the agrifood sector address the end consumers and concentrate on products that are processed and ready for consumption, thus quality efforts often concentrate on the final product. Moreover, thereâs a widespread view that agricultural commodities like wheat arenât suitable neither for product focused marketing nor branding. However, recent developments in the in agrifood sector challenge this view. The increasing use of biotechnology, the globalisation of markets and changing consumer demands for quality, food safety and process attributes require improved communication concepts and information sharing along whole production chains. This paper considers the development of a quality communication system to support a regional wheat brand and prerequisites for quality management efforts.
    Keywords: prototyping, quality communication system, region of origin, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  6. By: Kriege-Steffen, Astrid; Boland, Hermann; Lohscheidt, Julia; Schneider, Flurina; Stolze, Matthias
    Abstract: Nowadays the food market is very complex and anonymous. Consequently, consumer trust in food has become a key issue for food choice. For example, the production process of food is not always transparent for consumers. To provide more transparency and to enhance consumer trust, different initiatives communicating traceability to the consumers exist. Visualised traceability systems such as the initiative âBio mit Gesichtâ allow consumers to gather information about the farmer who has produced the food as well as information about his farm and family. This study explores consumer trust in organic food, the impact of trust in the buying decision and the effectiveness of enhancing consumer trust by communication strategies on traceability. The research is grounded on the general finding that trust is one of the most crucial aspects when consumers decide whether or not to buy organic products. The study consists of two tasks, a quantitative and a qualitative survey. In this paper the focus is laid on the second task, a qualitative survey. The used method is the structureâformationtechnique. The aim is to combine an interview with a visualising technique. With the help of this method the factors which influence the decision of consumers to buy or not to buy organic food should become clear. Furthermore, the role of trust in the buying decision will be explored. Moreover, an investigation should be made as to whether or not traceability systems influence consumer trust in organic food. This research is currently being conducted but preliminary results can already be presented. The results of the study will help develop communication strategies for enhancing consumer trust in organic food.
    Keywords: consumer trust, organic food, traceability systems, structureâlayingâtechnique, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  7. By: Groot, Etienne; Albisu, Luis Miguel
    Abstract: Fresh fruits are always recommended as ingredients in healthiest diets. However, there is a tendency for consumers to move their consumption towards transformed fruits, which are integrated in many food products. Quite commonly fresh fruits are difficult to handle and store but they also do not have regular quality when they reach consumers. There are many other elements besides the physical characteristics, which are very important for consumers, and they can be promoted through marketing actions. It is very important to understand why consumers make elections of fresh fruits in order to increase their consumption. The aim of this study is to understand how consumers make their purchasing choices based on the most important peachesâ attributes and levels. In Spain there are 20 fruits with the Protected Designation of Origin (PDO) label. Among those PDOs, only one brand certifies the peachesâ origin and it is called âCalanda Peachesâ. This fruit has been selected to test several hypotheses about consumersâ fruits choice. The survey collects information from questionnaires applied to PDO Calanda peaches` consumers that were attending two hypermarkets in Zaragoza city, in 2009. An attributeâlevel bestâworst experiment was undertaken, respondents stated the most and the least important characteristic in their purchasing. Each characteristic, or alternative, is an attribute associated to a level of that attribute. In our case, nine hypothetical products were presented from different combinations of 4 attributes, with 3 levels in each attribute, (price: 1.2 â¬/kg, 2.4 â¬/kg and 3.6 â¬/kg; origin: PDO Calanda, non PDO Calanda and non Calanda; packaging: bulk, conventional packaging and active packaging; and fruit size: small, medium and big) to allow main effects estimation. Data were analysed using Weighted Least Squares (WLS) by in BestâWorst Paired (BWP) and BestâWorst Marginal (BWM) methods. Both models allow the attribute and attributeâs levels impact estimation on consumer purchase decision. They also have similar measurement properties, but as Paired models have more observations per respondent, they present smaller standard errors. Results show that both models have good performance. Consumers give different weights to the attributes when they buy peaches. There is an overriding influence of the origin especially for the attributeâlevel Calanda in comparison with the rest.
    Keywords: peaches, Protected Designation of Origin (PDO), consumer behaviour, market segments, attribute levels bestâworst experiment, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  8. By: Gil, Ricard (IESE Business School); Riera-Crichton, Daniel (Bates College)
    Abstract: In this paper, we empirically test the relation between price discrimination and product market competition in a two-sided market setting using a new data set of Spanish local TV stations that provides information on subscription and advertising prices per station for 1996, 1999 and 2002. During these years, changes in regulation in this sector had a deep impact on the degree of local market competition. We use differences in market structure across markets and across years to study the relation between competition and price discrimination in this setting. Our findings suggest that stations in more competitive markets are less likely to use price discrimination. We also find evidence that stations price discriminating in a market are also more likely to price discriminate on the other market. Finally, cable subscription fees and advertising prices are higher in more competitive markets which suggests that tougher competition may increase market segmentation through station differentiation, driving stations to charge higher uniform prices to more loyal customers. This may indicate that less price discrimination may be associated with lower consumer surplus in all markets.
    Keywords: Price discrimination; market competition; Local TV Industry; product; subscription; advertising;
    Date: 2011–01–13
  9. By: Coppola, Adele; Verneau, Fabio
    Abstract: Food is a very sensitive area and the most intimate form of consumption. Consumer choice is known to be strongly affected by emotional factors usually not taken into account in economic analysis. At the same time it is clear that such emotional factors can affect consumer behaviour and market reactions above all when there are scandals and concerns. One of the emotional aspects that seems to dominate consumer behaviour in the food sector is soâcalled magical thinking which leans on two different pillars: the contagion principle and the similarity principle. The contagion principle affects the concept of naturalness which, according to cognitive psychologists, is a key factor in determining consumer preferences. The main element stemming from this psychological approach is the generalised superiority which characterises those foods which are perceived as natural by consumers. It has also been observed that the specific kind of processing as well as the adding or subtracting of unnatural elements can modify the perception of naturalness and the degree of acceptability for food products. A survey which bore all such considerations in mind was conducted on a sample of 180 people interviewed shortly after their shopping trip to superâ and hyperâmarkets in the province of Naples. A questionnaire was submitted to sample in winter 2009. The questionnaire collected information about the perception of naturalness and its role in determining consumer preferences for different food products and different kinds of processing. A specific section of the questionnaire covered a case study and gathered information about the willingness to buy a specific food product: pasteurized and microfiltered fresh cowâs milk. This product has the same nutritional qualities and the same taste as fresh pasteurized cowâs milk, but has a longer shelfâlife due to specific technology. On the basis of the results and by using a binary model, consumer willingness to purchase the specific milk was estimated. The findings permit an analysis of the role that both different types of product processing or manipulation and the various forms of innovation can play in determining levels of trust and modifying the discrepancy between objective and perceived quality.
    Keywords: food technology, consumer perception, contagion principle, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  10. By: Alessio Cavicchi (Università di Macerata); Benedetto Rocchi, Matteo Baldeschi (Università di Firenze)
    Abstract: <div style="text-align: justify;">Farmers Markets (FMs) around the world are often considered as one key response to the less sustainable conventional food production systems. Despite the economic crisis, international studies show that the most important factor leading people to buy fresh products in these points of sale is the quality. In fact, consumers usually cite \better food quality", \locally produced foods", \higher social interaction" and \learning directly about the vendors and their food production practices", as the principal motivations in buying in FM environment. In this paper the results of a survey carried out in several FMs and shops in Tuscany are presented. A sample of consumers were interviewed on-site using a structured questionnaire. The attitude of respondent towards FM was assessed using a test scale composed of 16 items referring to five different features of this form of distribution, supposed to be relevant in the consumer choice: quality of products, direct contact with farmers, convenience, environmental sustainability, and support for rural development processes. The high level of reliability of the attitude scale allowed its use in performing a cluster analysis of observed units. The cluster analysis allowed to identify two groups of consumers with different characteristics both in term of socio-economic descriptive variables and in term of attitudes and motivations towards FMs.</div>
    Keywords: food miles,Alternative Food Networks (AFN),sustainability,Italy,Short Food Supply Chain (SFSC)
    JEL: D12 Q13
    Date: 2011–02
  11. By: Griffith, Garry; Thompson, John; Polkinghorne, Rod; Gunner, Richard
    Abstract: Variable eating quality was identified as a major contributor to declining Australian beef consumption in the early 1990s. The primary issue was the inability to predict the eating quality of cooked beef before consumption. A R&D program funded by industry and Meat and Livestock Australia investigated the relationships between critical control points along the supply chain, cooking methods and beef palatability. These relationships were underpinned by extensive consumer taste panels. Out of this R&D grew the Meat Standards Australia (MSA) voluntary meat grading system which aimed at predicting consumer palatability scores of cooked beef. Quality was defined on the basis of one of four grades. The grading model predicts consumer scores for 135 âcut by cooking methodâ combinations for each graded carcass. The MSA system commenced in 1999/2000 and at present some 850,000 cattle are graded annually, about 25% of the total domestic kill. This paper first describes the evolution of the MSA grading scheme and its adoption by industry. Next, evidence is presented relating to consumersâ willingness to pay (WTP) for guaranteed eating quality, the premiums that Australian consumers have actually paid for MSA graded cuts, and the extent to which premiums paid by consumers are transmitted back along the value chain to cattle producers. WTP data collected during exit surveys from taste panels in Australia, the United States, Japan and Ireland showed that consumers were willing to pay more for premium quality. However, whilst MSA has the capacity for four quality grades, it is mostly used to simply discriminate between ungraded and graded product (ie 3 star or better). A survey of Australian beef retailers and wholesalers suggested that from 2004/05 to 2007/08, beef consumers were prepared to pay around $0.32/kg extra for MSA branded beef on a carcass weight equivalent basis. Retailers kept about $0.06/kg and wholesalers kept about $0.12/kg. The remaining $0.14/kg was passed back to cattle producers. Despite accelerated use of MSA in the wholesale trade, visibility at retail is generally low. It is being used predominantly to support private brand initiatives or to underpin existing channel partner offers. The paper concludes by discussing two case studies of business models that small niche beef retailers have developed to further capture the benefits from the MSA scheme through introduction of private brands. In summary, the MSA innovation has resulted in a higher degree of accuracy in the ability to predict beef eating quality for consumers. This has improved consumer choice, opportunities for value adding, and sufficient transmission of the premiums paid by consumers for graded cuts to provide real incentives for beef producers to supply MSAcompliant cattle.
    Keywords: Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods,
    Date: 2010–10
  12. By: Chiodo, Emilio; Casolani, Nicola; Fantini, Andrea
    Abstract: The paper analyses how different aspects connected with regulations can influence the consumersâ quality perception and the value that consumers attribute to the wine sector products. In particular, aspects concerning labelling and presentation of designations of origin, which, in turn, mirror different regulations of production methods, are considered. Consumersâ preference can allow enterprises to complying with more restrictive rules and sustain higher costs for differentiate their products and achieve higher quality. When choosing a product, consumers do not evaluate each single quality factor but the product as a whole, therefore the analysis has to be done with a methodology considering both the combination of all characteristics of the product, and the contribution of every factor to the creation of value for consumers. For this reason the value that consumers attribute to different characteristics is evaluated through an experimental economic analysis applying the method of the Conjoint analysis.
    Keywords: Conjoint analysis, designations of origin, wine sector regulation, consumer perception, Agricultural and Food Policy, Q 13, Q 18,
    Date: 2011–02–10
  13. By: Banterle, Alessandro; Cavaliere, Alessia; Stranieri, Stefanella; Carraresi, Laura
    Abstract: In the EU market small and medium sized enterprises (SMEs) represent the greater part of the food industry, specially with regard to traditional food products (TFPs). However, the growth of competition, connected mainly to globalisation, is making it very difficult for SMEs to survive. On the other hand, market opportunities for SMEs are connected to the evolution of consumer preferences toward food quality. To profit from such opportunities and to survive on the market, SMEs need to adapt their strategies, focusing on innovation aspects in order to meet consumer requirements and to compete on the market. The literature shows that firmsâ market orientation and marketing capabilities are very important for innovation in food industries to guarantee that innovation reflects market needs. The purpose of this paper is to analyse the relationship between the level of firm innovativeness and the different stages of marketing management process, in order to understand if good results in marketing management can affect firm innovation. An interactive questionnaire available on the web has been used for the data collection, with the aim of evaluating SME marketing management capabilities and innovation development. The survey was conducted on 468 EU country SMEs producing TFPs. Linear Regression was run to assess the link between marketing activities and the level of firm innovation. Our empirical analysis reveals that SME marketing management capabilities show significant and positive relationships with a firmâs innovation. This aspect reinforces our assumptions on the strategic role of marketing activities on a firmâs capacity to understand consumer needs, and thus its need to be innovative and market oriented.
    Keywords: traditional food products, innovation, marketing management capabilities, linear regression model, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, L25, L66, M31, Q13,
    Date: 2010–10
  14. By: Ioana Chioveanu (Universidad de Alicante); Ugur Akgun (Charles Rivers Associates)
    Abstract: This paper considers the use of loyalty inducing discounts in vertical supply chains. An upstream manufacturer and a competitive fringe sell differentiated products to a retailer who has private information about the level of stochastic demand. We provide an analysis of the market outcomes when the manufacturer uses two-part tariffs (2PT), all-unit discounts (AU) and market share discounts (MS). We show that retailer’s risk attitude affects manufacturer’s preferences over these three pricing schemes. When the retailer is risk-neutral, it bears all the risk and all three schemes lead to the same outcome. When the retailer is risk-averse, 2PT performs the worst from manufacturer’s perspective but it leads to the highest total surplus. For a wide range of parameter values (but not for all) the manufacturer prefers MS to AU. By limiting retailer’s product substitution possibilities MS makes the demand for manufacturer’s product more inelastic. This reduces the amount (share of profits) the manufacturer needs to leave to the retailer for the latter to participate in the scheme.
    Keywords: vertical contracts, loyalty discounts, private information, market share discounts.
    JEL: J42 J12 J13
    Date: 2011–02
  15. By: Haas, Rainer; Weaver, Robert D.
    Abstract: A widely held view is that a dramatic shift is well underway in the structure of food system. First noticed at the farm level, contracting between retailers and fruit and vegetable growers for specific quality attributes signaled a shift from commodity style markets to relational transactions managed by retail grocers operating on massive spatial scales. By contracting directly with suppliers, retailers found they could more efficiently procure and manage characteristics of products and transactions that affect their performance. Similar contracting between meat processors and growers emerged in animal production. As a result of this shift, retailers define product specifications and contract their production. This new organizational form constitutes a shift from a manufacturer dominated push system coordinated by markets operating at grower, assembler, processor, wholesaler, and retailer levels, to a pull system coordinated by bilateral contracts and agreements. A key element of new strategies associated with these new organizational forms is the private label that can be used by retailers to strategically define attributes of products. The implications of private labels for farmer, processors, and consumers are significant and have received substantial attention by economic researchers, though many issues remain unresolved with respect to the performance implications of private labels and the new functional role of retailers. Of specific interest in this paper is how private labels relate to national brands, do they constitute near equivalent products that are close substitutes, or do they offer cheaper, lower quality products to a different market segment than buys national brands? To address this question, the paper presents results of studentâimplemented effort to examine field evidence gathered through scripted interviews with consumers at retail grocery venues. The paper begins with a summary of the key results available from the literature and identifies questions left unresolved. The paper then presents our approach followed by presentation of results from field interviews. We implement the study in Vienna, Austria and find strong evidence that supports the conclusion that while private labels have been widely adopted as a strategic tool by retailers. We find that private labels have been targeted at two market segments. A segment of consumers looking for low cost, and lower quality products are served by several private labels, while an important set of private labels targets the segment of consumers looking for high quality, higher priced products. The latter finding confirms that private labels are appearing that constitute national brand near equivalent products. This finding further suggests that continued structural change in the food industry is likely to see increasing supply of private labels that challenge the market positions of national brands.
    Keywords: Private labels, store brands, pull innovation, consumerâorientation, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2010–10
  16. By: Gibbon, Candice; Nolan, Elizabeth
    Abstract: We estimate a hedonic pricing model to quantify the relationship between clean price of lots of wool and individual lot characteristics for all superfine, fine, medium and broad wool types. We expand on existing literature by controlling for key macroeconomic conditions at the time of sale and are able to examine the longer term trend in global demand for wool by utilizing data over a number of selling seasons. Our results indicate fibre diameter, strength, breed group, vegetable matter base and fleece contamination play a key role in the purchase decision. Premiums accrue for finer, strong wool which has been grower classed, while discounts have been identified for wool tainted by branding contamination, unscourable colour or the presence of skin pieces. Key market conditions such as world economic growth, price of substitutes and exchange rates with key trading partners have been found to significantly affect Australiaâs competitiveness in the global market for wool.
    Keywords: Agribusiness, Demand and Price Analysis, Livestock Production/Industries, Marketing,
    Date: 2011
  17. By: Hingley, Martin; Boone, Julie; Haley, Simon
    Abstract: This study aims to understand local food and explore the barriers to development for small innovative food businesses. Research was conducted through depth interviews and a survey in NorthâWest England. Results indicate that small business success can be subjective and performance dependent on business aims. Identified were issues concerning access to finance, burden of regulations and the need for support from industry networks and government. Lack of an official and recognised definition of the term âlocal foodâ had implications for marketing strategy. Small businesses recognise that customers are increasingly concerned with food provenance and traceability, but that they and their representative associations need to do more to make these links.
    Keywords: Local, food, smallâbusiness, growth, UK, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2010–10
  18. By: Higuchi, A; Moritaka, M; Fukuda, S
    Abstract: In the Peruvian jungle, there are two main cocoa marketing channels: the intermediaries and the cooperative. For example, the Acopagro Cooperative, a Peruvian organization, has contributed to the shift from illegal crops like coca to an alternative crop like cocoa which gives small scale farmers a sustainable welfare. Despite the fact that the Acopagro cooperative benefits their members by paying a fair price, supplying technical assistance and credit, many farmers still prefer commercializing their cocoa via the intermediaries. A further analysis of cocoa prices was carried out through personal interviews and a survey made between December 2009 and January 2010, of 243 farmers in Juanjui, San Martin, Peru's main cocoa production area. The outcomes demonstrate that there is not so much difference between the cocoa price that the farmers receive from the Cooperative versus through the intermediaries. The main difference is that Acopagro cooperative divides its surplus income among its members at the end of each fiscal year. These results are consistent with previous analysis1 that proved participant farmers are better paid for their product than non-participants. Moreover, there are significant differences in the agri-marketing functions performed by each marketing channel. Farmers who prefer to commercialize via the intermediaries do not choose this marketing channel mainly due to their desire to be independent in the market or their low cocoa production. Because high economies of scale are required for large volumes of produce, the cooperative should attract small scale farmers who distribute cocoa through intermediaries to become Acopagro members in order to satisfy international market demands.
    Keywords: Acopagro cooperative, Peruvian jungle, intermediaries, cocoa, price, agri-marketing channel, marketing channel., Agribusiness,
    Date: 2011

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