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Firm-Level Competition in Price and Variety AgEcon
Richards, Timothy J.; Patterson, Paul M..
Consumer product manufacturers often compete in dynamic, multi-firm oligopolies using multiple strategic tools. While existing empirical models of strategic interaction typically consider only parts of the more general problem, this paper presents a more comprehensive alternative. Marketing decision are dynamically optimal, consistent with optimal consumer choice, and responsive to rival decisions. Using a single-market case study that consists of five years of four-weekly data on ready-to-eat cereal sales, prices, and new brand introductions, we test several hypotheses regarding the nature of strategic interaction among several rival manufacturers. We find that cereal manufacturers price and introduce new brands cooperatively in the same period, but...
Tipo: Journal Article Palavras-chave: Cereal; Differentiated products; Dynamics; Oligopoly; Product line rivalry; Strategic interaction; Demand and Price Analysis; D43; L13; L66; M31; Q13.
Ano: 2006 URL: http://purl.umn.edu/43788
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An analysis of the challenges of the maize seed industry in eastern and southern Africa AgEcon
Langyintuo, Augustine S.; Mwangi, Wilfred; Diallo, Alpha O.; MacRobert, John F.; Dixon, John; Banziger, Marianne.
The liberalization and restructuring of the seed sector in eastern and southern Africa (ESA) during the past two decades have witnessed a proliferation of private seed companies in the maize seed industry (Hassan et al., 2001; Lemonius, 2005). Although the total number of registered maize seed companies increased from 8 and 11, respectively, in 1997 to 40 each, the quantities of seed marketed barely doubled, increasing from 23,000 and 27,000 tons to 53,000 and 51,000 tons, respectively; an indication that the reforms are insufficient in ensuring efficient functioning of the sector in the two regions. A study involving 117 seed providers, representing 92 percent of all registered maize seed companies in ESA in 2007 identified bottlenecks that have...
Tipo: Conference Paper or Presentation Palavras-chave: Keywords: Maize seed industry; Seed policies; Eastern and southern Africa; Institutional and Behavioral Economics; International Development; Marketing; D21; M31; O32.
Ano: 2009 URL: http://purl.umn.edu/51713
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Evaluacion de preferencias hacia las mandarinas en el mercado britanico. Aplicacion de las subastas Vickrey AgEcon
Martinez-Carrasco, Laura; Vidal, Fernando; Poole, Nigel D..
El presente trabajo tiene como objetivo analizar las preferencias de los consumidores británicos hacia cinco variedades de mandarinas (dos de ellas españolas) en tres condiciones de información diferentes: inspección visual, pelado y cata. Se aborda por tanto el proceso de compra desde dos perspectivas: antes y después de experimentar el producto, y considerando tanto atributos de búsqueda como atributos de experiencia. Se pretende asimismo estudiar las posibilidades de mercado de las variedades españolas en el mercado británico. La metodología empleada ha sido la subasta experimental Vickrey de segundo precio con dos tratamientos experimentales: la mitad de los grupos realizó una valoración hedónica de las frutas antes de emitir las pujas, mientras que la...
Tipo: Journal Article Palavras-chave: Experimental auctions; Willingness to pay; Hedonic test; Citrus; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; M31; Q13.
Ano: 2006 URL: http://purl.umn.edu/8004
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Understanding Ornamental Plant Market Shares to Rewholesaler, Retailer, and Landscaper Channels AgEcon
Hinson, Roger A.; Paudel, Krishna P.; Velastegui, Marco.
Market channel alternatives that include garden centers, landscapers, mass merchandisers, and rewholesalers have contributed to the growth of ornamental crops sales in the United States. The impact of growers’ business characteristics on shares of sales to these channels by firm size was estimated using the two-limit Tobit model. Important explanatory variables were regions of the United States, sales of plant groups, kinds of contract sales, and channel diversity. There were important differences in behavior by grower size. Overall, the results indicate a stronger than expected role for the rewholesaler channel as a preferred channel for ornamental plant sales.
Tipo: Article Palavras-chave: Garden centers; Landscapers; Market channels; Mass merchandisers; Ornamental plants; Rewholesalers; Two-limit Tobit; Marketing; M31; L14.
Ano: 2012 URL: http://purl.umn.edu/123782
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Does Price or Income Affect Organic Choice? Analysis of U.S. Fresh Produce Users AgEcon
Smith, Travis A.; Huang, Chung L.; Lin, Biing-Hwan.
This study analyzes consumer purchasing behavior of organic fresh fruits and vegetables using the 2006 Nielsen Homescan panel. An ordered logit model was estimated to quantify the impacts of economic and socio-demographic factors on the probability of a household belonging to a specific organic user group—devoted, casual, or nonuser. Results suggest that price and income, to some extent, affect consumer purchases of organic produce. Additionally, the profile of an organic produce user is most likely to consist of an Hispanic household residing in the Western United States with children under 6 years old and a household head older than 54 years with at least a college degree.
Tipo: Journal Article Palavras-chave: Nielsen Homescan data; Ordered logit; Organic fruits and vegetables; User groups; Agribusiness; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; C25; D12; M31; Q11.
Ano: 2009 URL: http://purl.umn.edu/56659
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Food Safety. Commodity Science Point of View AgEcon
Zalewski, Romuald I.; Skawinska, Eulalia.
The paper addresses "food safety" and 'food quality' from the position of commodity and food science rather than economy. The various descriptions of both terms in literature are reviewed in connection with customer/supplier ability to evaluate food safety and quality by examination of various characteristics. Food safety has been described as opposite to food risk. Differences in perception of food risk by customer, producer/supplier and official agencies are discussed in this paper. The objective safety (and quality) of food can be evaluated using three categories of food risk (biological, chemical and physical) measured on a seven step intensity scale by producers and official agencies but not by customers. This leads to formulating food safety policy...
Tipo: Conference Paper or Presentation Palavras-chave: Food safety; Food quality; Risk; Food Consumption/Nutrition/Food Safety; Q13; Q18; M31.
Ano: 2006 URL: http://purl.umn.edu/25734
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The Impact Of Socio-Demographic Factors And Political Perceptions On Consumer Attitudes Towards Genetically Modified Foods: An Econometric Investigation AgEcon
Antonopoulou, Lina; Papadas, Christos T.; Targoutzidis, Antonis.
This survey-based paper investigates the impact of socio-demographic factors, along with political perceptions, as expressed by attitudes towards globalization, on consumer attitudes towards GM foods, in Greece. Different aspects of consumer attitudes regarding GM foods are examined, such as general preference, banning, labeling, intention to purchase them at a sufficiently low price, the nutritional category of food product and the proximity of the genetic modification to the final product. Econometric analysis using Logit and Probit models was conducted. Estimates clearly show that in general, attitudes towards GM foods are not affected by socio-demographic characteristics. However, political perceptions are a significant influential factor.
Tipo: Journal Article Palavras-chave: Globalization; Political; Genetically modified food; Econometric; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; D12; M31; R22.
Ano: 2009 URL: http://purl.umn.edu/58062
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STRATEGIES OF VALUE PROPOSITION ON THE INTERNET AgEcon
Doltgalski, Tymoteusz.
The paper presents strategies of value proposition on the Internet. Author has distinguished and described strategies of efficiency, free values, complete customer solutions, unique values and value co-creation. These strategies are different from traditional strategies of value proposition, which refer values for customers to the level of price.
Tipo: Journal Article Palavras-chave: Value proposition; Values for customer; Internet; E-commerce; Online environment; Value offerings; Value co-creation; Mass customization; Freemium; International Development; Research and Development/Tech Change/Emerging Technologies; M31.
Ano: 2010 URL: http://purl.umn.edu/92340
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Caused Related Marketing: Between Solidarity and Competition within the Italian Agri-Food System AgEcon
Vastola, Antonella P..
Today’s consumers demand products and services not only with proven intrinsic quality features but also endowed with non-material attributes such as respect for the environmental and ethical values. These concerns are central to recent marketing developments. Cause related marketing (CRM) is a good example of the new entrepreneurial strategies able to achieve on the one hand utilitarian aims and on the other hand to contribute to a social cause through different forms of company donation. From the analysis it emerges that in Italian agri-food system three types of agents are applying CRM: companies producing widely consumed brands, with high sales volume; small companies producing high quality goods but with brands known within a limited market area; mass...
Tipo: Conference Paper or Presentation Palavras-chave: Cause related marketing; Agri-food system; Agribusiness; M31.
Ano: 2006 URL: http://purl.umn.edu/7750
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Analysis of Marketing Margins in Eco-Labeled Products AgEcon
Carambas, Maria Cristina D.M..
This article aims to explain the marketing margins in the eco-labeled products market in Thailand and the Philippines. It focuses on labeled organic agricultural commodities that are commonly exported especially in Europe, which has demand for this type of products. Understanding the interplay of economic variables influencing marketing margins in the eco-labeled market as compared to its conventional counterpart is relevant in understanding how this growing niche market works. The analytical framework developed by Gardner (1975) was used in the analysis to provide a basic understanding of how marketing margins behave. Econometric results show that changes in demand rather than the changes in supply explain most of the variations in margins particularly in...
Tipo: Conference Paper or Presentation Palavras-chave: Marketing margins; Price spread; Organic products; Eco-labeling; Q12; Q13; M31; L11.
Ano: 2005 URL: http://purl.umn.edu/24600
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TRANSLATING LATENT TRENDS IN FOOD CONSUMER BEHAVIOR INTO NEW PRODUCTS AgEcon
Gellynck, Xavier; Kuhne, Bianka; Van Wezemael, Lynn; Verbeke, Wim.
For successful product development it is important to explore the latent changes in consumer behavior prior to the product development process. The identification of a latent trend before the manifestation moment can be achieved by trend analysis. Trend analysis delivers insights that explore the future in order to identify prospective consumers and new product ideas, but also includes a feeling for the currents in market and technology. Hence, the aim is to identify emerging weak signals in consumer behavior that have potential as large revenue opportunities when implemented into new products. Therefore, the objective of our paper is to provide a novel tool for this identification and how the identified trends can be translated into new products. Until...
Tipo: Conference Paper or Presentation Palavras-chave: New Product development; Trend analysis; Novel trend implementation tool; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; M31; O31; O32.
Ano: 2010 URL: http://purl.umn.edu/116422
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WHEN DOES THE PRICE AFFECT THE TASTE? RESULTS FROM A WINE EXPERIMENT AgEcon
Almenberg, Johan; Dreber, Anna.
We designed an experiment that examines how knowledge about the price of a good, and the time at which the information is received, affects how the good is experienced. The good in question was wine, and the price was either high or low. Our results suggest that hosts offering wine to guests can safely reveal the price: much is gained if the wine is expensive, and little is lost if it is cheap. Disclosing the high price before tasting the wine produces considerably higher ratings, although only from women. Disclosing the low price, by contrast, does not result in lower ratings. Our finding indicates that price not only serves to clear markets, it also serves as a marketing tool; it influences expectations that in turn shape a consumer’s experience. In...
Tipo: Working or Discussion Paper Palavras-chave: Price-Quality Heuristic; Attribute Information; Role of Expectations; Marketing; Blind Tasting; Wine; Consumer/Household Economics; Demand and Price Analysis; C91; D03; D83; M31.
Ano: 2009 URL: http://purl.umn.edu/51755
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Hedonic Retail Beef and Pork Product Prices AgEcon
Parcell, Joseph L.; Schroeder, Ted C..
Consumer-level hedonic models are estimated to determine factors affecting retail pork and beef meat cuts. Results indicate that brand premium and discount varies across private, national, and store brands and that brand premium varies across meat cuts carrying the same brand name. Product size discounts are linear for beef and nonlinear for pork, meat items on sale are significantly discounted to non-sale items, specialty stores typically will not garner higher prices than supermarket/grocery stores, and warehouse stores typically have premium prices relative to supermarket/grocery stores.
Tipo: Journal Article Palavras-chave: Beef; Brand premium; Hedonic modeling; Pork; Demand and Price Analysis; Livestock Production/Industries; Q13; D12; M31; M32.
Ano: 2007 URL: http://purl.umn.edu/6622
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Una aplicación de la escala de fobia a los alimentos nuevos. El caso de los alimentos étnicos AgEcon
Camarena-Gomez, Dena M.; Sanjuan, Ana Isabel.
El artículo investiga las actitudes de los consumidores hacia los alimentos nuevos mediante la escala FNS (Food Neo-phobia Scale). Apartir de ella se obtiene el perfil de los individuos más y menos proclives a la introducción de nuevos alimentos en sus dietas, denominados respectivamente, «neo-fílicos » y «neo-fóbicos». Entre estos alimentos nuevos, los étnicos o propios de un país y cultura, están empezando a introducirse en el mercado español, especialmente impulsados por la inmigración. A partir de la escala actitudinal, se obtienen perfiles socio-demográficos y de comportamiento de compra y consumo de alimentos étnicos, claramente distintivos, lo que permite extraer información relevante de cara a la evaluación del potencial del mercado étnico en España.
Tipo: Journal Article Palavras-chave: Ethnic food; Food neophobia scale (FNS); Consumption and purchase habits; Agricultural and Food Policy; Q13; M31.
Ano: 2008 URL: http://purl.umn.edu/57235
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Interconnected firms’ relationships as a source of a competitive advantage AgEcon
Rudawska, Iga.
The mainstream economy poses the opinion that a competitive advantage lies in resources, and, consequently - in competences as well - being a share of a single company and remaining under its sole control. Recently, some researchers (e.g. Castaldo, 2007; Lavie, 2006) have revised that approach and tend to emphasise the role of other sources of competitive advantage in business strategy, which embrace new, intangible assets. Such assets are being born and developed only within the inter-firm relationships built in network environment. Thus, the presented paper focuses on relational-based approach towards gaining relational rent. It aims at discussing the sources of an appropriated relational rent and, presenting - after Lavie, a new types of rent extracted...
Tipo: Journal Article Palavras-chave: Enterprise; Relationship management; Competition; Relational rent; Partnership.; International Development; M10; M31; I11.
Ano: 2010 URL: http://purl.umn.edu/95946
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The FDA Food Safety and Modernization Act and the Exemption for Small Firms AgEcon
Pouliot, Sebastien.
The FDA Food Safety Modernization Act of 2010 is new legislation that mandates, among other things, new food safety standards. The act includes a clause that exempts small firms from new regulatory requirements. This paper investigates the effects of a small firm exemption from more stringent food safety standards. The model compares food safety, total output and the number of market participants for different food safety regulation with and without an exemption for small firms. The numerical examples show that a more stringent food safety regulation increases food safety, increases the price of food, decreases the total output and decreases the number of firms. A new food safety standard with an exemption for small firms increases the average food safety...
Tipo: Conference Paper or Presentation Palavras-chave: Food safety; Heterogeneous firms; Regulation; Regulatory exemption; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; D21; M31; Q10; Q18.
Ano: 2011 URL: http://purl.umn.edu/103885
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Influence of Product Perception and Quality Label Valuation on Consumer Decision. The Case of Beef in Italy and Spain AgEcon
Barrena Figueroa, Ramo; Sanchez Garcia, Mercedes; Rosa, Franco.
The consumer perception of the relation between food and health is increased his importance. This situation generates business opportunities, when his effect is positive (for example "functional food"), or limitations or reductions in the markets (for example "food with risk perception"). This paper trait to present the relation between consumer perception of 1) intrinsic and extrinsic product attributes and 2) the influenced aspects on the label valuation on the product confidence and consumption reduction, in one market with risk perception (beef). The data has been obtained in two European Regions: Friuli-Venezia-Giulia in Italy and Navarra in Spain, differentiated in commercial aspects related fundamentally with the product differentiation. The...
Tipo: Conference Paper or Presentation Palavras-chave: Consumer behaviour; Label; Structural equation model; Multi-group analysis; Beef; Consumer/Household Economics; M31; Q13.
Ano: 2005 URL: http://purl.umn.edu/24515
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Quality perception of PDO beef producers AgEcon
Barreira, Maria Madalena; Brandao, A.R.W.; Lemos, Jose Pedro Cardoso; Fontes, Magda Aguiar.
Food quality from a consumer perspective includes sanitary aspects as well as nutrition, but also taste, aspect, integrity and the particularity of products. But quality at the consumer level can only be achieved if quality is respected throughout the whole chain. An analysis is undertaken using as a case study Portuguese producers of two types of PDO beef. Results, using multivariate data analysis, show that the main attributes for a quality beef at the producers` level are: feeding, finishing, specific quality, age at slaughter, breed and transport. Results also suggest that producers have distinct quality perceptions on PDO beef.
Tipo: Journal Article Palavras-chave: Quality; Beef; Protected Designation of Origin; Producers` quality Perception; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Q13; M31.
Ano: 2009 URL: http://purl.umn.edu/56768
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Using Experimental Auctions for Marketing Applications: A Discussion AgEcon
Lusk, Jayson L..
The present article discusses general issues associated with experimental auctions and their relative advantages and disadvantages over other marketing research techniques. Experimental auctions create an active market environment with feedback where subjects exchange real goods and real money, which is not generally the case with other methods. The article also discusses four experimental design issues associated with experimental auctions: auction mechanism, market feedback and bidder affiliation, demand reduction and wealth effects, and multiple attribute valuation. Each of these experimental design issues, if not properly controlled, have the potential to create serious flaws in marketing recommendations.
Tipo: Journal Article Palavras-chave: Auctions; Experimental economics; Marketing; Valuation; Willingness-to-pay; D44; C92; Q13; M31.
Ano: 2003 URL: http://purl.umn.edu/43210
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Consumer and Market Responses to Mad-Cow Disease AgEcon
Schlenker, Wolfram; Villas-Boas, Sofia Berto.
We examine how consumers and financial markets in the United States react to two health warnings about mad cow disease: The first discovery of an infected cow in December 2003 as well as health warnings about the potential effects aired in the highly-watched Oprah- Winfrey show seven years earlier. Using a unique UPC-level scanner data set, we find a pronounced and significant reduction in beef sales following the first discovered infection. This effect slowly dissipates over the next three months. Interestingly, no significant impact can be detected in the diary files of the Consumer Expenditure Survey (CES) that has a much smaller sampling frame. However, futures prices show a comparable drop in prices to the scanner data. Contracts with longer maturity...
Tipo: Working or Discussion Paper Palavras-chave: Food safety; Mad cow diseases; Consumer expenditure survey; Scanner data; Futures prices; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; D12; Q18; M31.
Ano: 2006 URL: http://purl.umn.edu/7164
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