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Managing Quality under Heterogeneous Consumer Demand and Product Quality AgEcon
Carriquiry, Miguel A.; Babcock, Bruce A..
Based on accepted advances in the marketing, economics, consumer behavior, and satisfaction literatures, we develop a micro-foundations model of a firm that needs to manage the quality of a product that is inherently heterogeneous in the presence of varying customer tastes or expectations for quality. Our model blends elements of the returns to quality, customer lifetime value, and service profit chain approaches to marketing. The model is then used to explain several empirical results pertaining to the marketing literature by explicitly articulating the trade-offs between customer satisfaction and costs (including opportunity costs) of quality. In this environment firms will find it optimal to allow some customers to go unsatisfied. We show that the...
Tipo: Working or Discussion Paper Palavras-chave: Consumer satisfaction; Heterogeneous customers; Quality expectations; Quality heterogeneity; Quality management; Repeated purchases; Demand and Price Analysis.
Ano: 2005 URL: http://purl.umn.edu/18637
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LONG-RUN PRICE RISK IN U.S. AGRICULTURAL MARKETS AgEcon
Schnepf, Randall D.; Goodwin, Barry K..
The last three years have realized significant structural changes in the U.S. agricultural policy environment. These changes include nearly complete planting flexibility and the elimination of target-price-based income support for agricultural producers. Many have questioned the extent to which such policy changes may influence the variability of agricultural prices. This analysis uses price series dating from 1944 to develop a multivariate framework to evaluate the long-run (inter-season) determinants of endogenous variability for the prices of corn, wheat, and soybeans. An annual measure of price variability is calculated from monthly spot market cash prices for each of the three commodities. The generalized method of moments estimation technique is...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Demand and Price Analysis.
Ano: 1999 URL: http://purl.umn.edu/21687
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Consumer Choice of Private Label or National Brand: The case of organic and non-organic milk AgEcon
Zhuang, Yan; Dimitri, Carolyn; Jaenicke, Edward C..
We use a two-stage, sample selection model to investigate organic milk purchases using Neilsen’s Homescan data. In the first stage, households decide on a weekly basis to buy mainly organic milk or non-organic milk. Results from this stage show that higher income, better education, having children at home, and several other demographic and marketing variables have a positive effect on organic choice. In the second stage, consumers then choose to buy mainly private label milk or national brand milk conditional on their first-stage choice. Most demographic and marketing variables are found to affect the organic and non-organic private label decision in the same way. However, our results show that a few factors, such as marriage status and children,...
Tipo: Conference Paper or Presentation Palavras-chave: Organic milk; Private label; Sample selection; Agribusiness; Consumer/Household Economics; Demand and Price Analysis.
Ano: 2009 URL: http://purl.umn.edu/49207
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Agricultural Contracts and Alternative Marketing Options: A Matching Analysis AgEcon
Katchova, Ani L..
The increasing use of agricultural contracts and processor concentration raises concerns that processors may offer lower contract prices in absence of local competition. This study examines the price competitiveness of marketing and production contracts depending on the availability of alternative marketing options. A propensity score matching method is used to compare prices using contract data from a farm-level national survey. The results show that the absence of other contractors or spot markets in producers’ areas does not lead to statistically significant price differences in agricultural contracts for most commodities, providing evidence that most agricultural processors do not exercise market power by reducing prices when other local buyers are not...
Tipo: Journal Article Palavras-chave: Agricultural prices; Alternative marketing options; Local competition; Marketing contracts; Production contracts; Propensity score matching; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Financial Economics; Marketing; Q13.
Ano: 2010 URL: http://purl.umn.edu/90672
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The Impact of Imports on Price-Cost Margins: An Empirical Illustration AgEcon
Lopez, Rigoberto A.; Lopez, Elena.
This article decomposes the impact of imports on domestic price-cost margins into separate price and cost effects. Using data from 24 food-processing industries, the empirical results show that although the direct impact of imports on prices is always negative, a positive net impact on price-cost margins occurs in industries characterized by low own-price elasticity of demand and diseconomies of scale. Further results show that the disciplining effect of imports is more preponderant the lower the degree of domestic competition.
Tipo: Working or Discussion Paper Palavras-chave: Market power; Imports; Market structure; International trade; Food industry; Agribusiness; Demand and Price Analysis; International Relations/Trade.
Ano: 2001 URL: http://purl.umn.edu/25153
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The Effect of Information Choice and Discussion on Consumers' Willingness-to-Pay for Nanotechnologies in Food AgEcon
Roosen, Jutta; Bieberstein, Andrea; Marette, Stephan; Blanchemanche, Sandrine; Vandermoere, Frederic.
We evaluate the impact of different information sequences on participants’ hypothetical willingness to pay (WTP) for food produced using nanotechnology. In three treatment groups, information on the health, societal, or environmental impact linked to nanotechnology was revealed in different sequences: an imposed order, a chosen order, and a chosen order after a discussion among participants. Results show that information choice is important. While in the imposed order, the first information revealed has no effect on WTP, the information chosen first has a strong impact. Discussion has no further impact. Health information was a priority and significantly decreased WTP, while societal and environmental information did not significantly influence WTP.
Tipo: Journal Article Palavras-chave: Discussion; Experimental economics; Food nanotechnology; Information choice; Willingness to pay; Demand and Price Analysis.
Ano: 2011 URL: http://purl.umn.edu/117398
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Development of the CNPP Prices Database AgEcon
Carlson, Andrea; Lino, Mark; Juan, WenYen; Marcoe, Kristin; Bente, Lisa; Hiza, Hazel A. B.; Guenther, Patricia M.; Leibtag, Ephraim S..
Data are available at: http://www.cnpp.usda.gov/USDAFoodPlansCostofFood.htm
Tipo: Report Palavras-chave: Food prices; USDA Food Plans; NHANES; CNPP Prices Database; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.
Ano: 2008 URL: http://purl.umn.edu/45851
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Factors Influencing Consumer Likelihood of Purchasing a Flexible-Fuel or Hybrid Automobile AgEcon
Li, Xiaogu; Clark, Christopher D.; Jensen, Kimberly L.; English, Burton C.; Yen, Steven T..
Developing fuels and vehicles that reduce our reliance on fossil fuels has become a priority due to the threat of global climate change and desire for reduced dependence on oil imports. Flexible-fuel vehicles that can run on ethanol/gasoline blends of up to 85% ethanol and hybrid electric vehicles present two such opportunities. While production of both flexible-fuel and hybrid vehicles is increasing, there is still a great deal of uncertainty about how consumers will respond to these products. To address this uncertainty, data was collected through an online survey of automobile owners that asked respondents how likely they were to choose either a flexible-fuel or hybrid vehicle as their next vehicle. A bivariate probit model was used to jointly analyze...
Tipo: Conference Paper or Presentation Palavras-chave: Flexible-fuel vehicles; Ethanol; E85; Hybrid electric vehicles; Demand and Price Analysis; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/60981
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Effects of Soybean Checkoff Research Expenditures on U.S. Soybean Yields and Net Revenue: A Time Series Analysis AgEcon
Bessler, David A..
Statistical methods are used to study relationships between research expenditures (adjusted for inflation) made from producer checkoff programs and soybean yields and net revenues in the United States for the years 1978 – 2007. Results presented are for yield and net revenue data and research expenditures for the entire United States. We find that research expenditures over the years 1994 to 2007 are responsible for a 0.95 bushel per acre per year increase in soybean yields. We calculate net producer revenues to be about $17 per acre higher than would have been the case without the soybean research checkoff expenditures.
Tipo: Report Palavras-chave: Soybean; Soybean Checkoff; Soybean Yields; Crop Production/Industries; Demand and Price Analysis.
Ano: 2009 URL: http://purl.umn.edu/90494
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Environmental flow allocation and counter-cyclical trading in the River Murray System AgEcon
English, Ben; Brearley, Taron; Coggan, Anthea.
Australia's climate is characterized by highly variable rainfall. As a consequence, many aspects of riverine ecosystems need both very wet and very dry periods to function effectively. This contrasts with water demands from industrial and agricultural sectors, which place a premium on access to a constant supply of water. This combination of demands suggests there could be considerable value in using water banking and trading mechanisms to reduce the social cost of achieving environmental objectives. In this paper, the concept of counter-cyclical trading is outlined and influences on its potential for reducing the cost of achieving environmental flow objectives evaluated. The potential value of using mechanisms to enable counter-cyclical trading across low...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental flow; Counter-cyclical; Water trading; Water banking; River Murray System; Demand and Price Analysis; Resource /Energy Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/58407
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Economic Effects of Oil and Food Price Shocks in Asia and Pacific Countries: An Application of SVAR Model AgEcon
Alom, Fardous.
This study investigates the economic effects of external oil and food price shocks in the context of selected Asia and Pacific countries including Australia, New Zealand, South Korea, Singapore, Hong Kong, Taiwan, India and Thailand. The study is conducted within the framework of SVAR model using quarterly data over the period 1980 to 2010 although start date varies based on availability of data. The study reveals that resource poor countries that specialize in heavy manufacturing industries like Korea and Taiwan are highly affected by international oil price shocks. Oil price shocks negatively affect industrial output growth and exchange rate and positively affect inflation and interest rates. On the other hand, oil poor nations such as Australia and New...
Tipo: Conference Paper or Presentation Palavras-chave: Oil price; Food price; Shocks; Economic effects; Asia; Pacific; SVAR; Agricultural and Food Policy; Demand and Price Analysis; Livestock Production/Industries.
Ano: 2011 URL: http://purl.umn.edu/115346
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Market Access for Local Food through the Conventional Food Supply Chain AgEcon
Abate-Kassa, Getachew; Peterson, H. Christopher.
The paper examines relationships and linkages between the conventional supply chain actors (wholesalers and retailers) and local food producers based on a study conducted in Southeast Michigan. A case study approach was employed to examine chain actors’ operations and to explore their roles, experiences and perceptions about local foods. Semi-structured interviews were conducted with the owners and managers of eleven retailers and six wholesalers. The study found differences in local food perceptions, buying experiences and perceived benefits and risks associated with local food sourcing activities. The study also identified some competition between local independent food retailers and alternative market outlets. The major implication of the findings is...
Tipo: Journal Article Palavras-chave: Local food; Supply chain; Buying local; Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Financial Economics.
Ano: 2011 URL: http://purl.umn.edu/100876
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Retail market prices of fonio reveal the demand for quality characteristics in Bamako, Mali. AgEcon
Dury, Sandrine; Meuriot, Veronique; Fliedel, Genevieve; Blancher, Sandy; Guindo, Fanta Bore; Drame, Djibril; Bricas, Nicolas; Diakite, Lamissa; Cruz, Jean-Francois.
African consumers' expectations concerning quality of food products are great. In spite of constrained budgets, we showed that market retailed prices revealed quality preferences of the consumers and not only production costs. In very poor countries like Mali, food innovation is limited by the very low purchasing power of the population. However, technological food product or process innovations are possible and sometimes valuable. Demand driven innovation may lead to open new markets, opportunities for small and medium scale enterprises and to improve consumers' welfare. Based on this assumption, technical research was done to provide new food products. In this paper, using both sensory test and a hedonic price approach, we estimated consumer demand for...
Tipo: Conference Paper or Presentation Palavras-chave: Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/7949
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The Impacts of Ethanol on the US Catfish Farm Sector AgEcon
Zheng, Hualu; Muhammad, Andrew; Herndon, Cary W., Jr..
In this study, we estimated catfish feed and farm price reduced form equations. Of particular importance was the impact of the recent increase in grain prices induced by ethanol production on feed cost and farm prices. This relationship was examined using an autoregressive distributed lag (ARDL) model. Results show that a 1% increase in corn prices caused a 0.134% and 0.263% increase in feed prices in the short- and long-run, respectively. Catfish farm prices increased by 0.106% (short-run) and 0.211% (long-run) given a 1% increase in feed prices. Between 2004 and 2008, corn prices increased from $2 to $6 per bushels. Taheripour and Tyner (2008) state that of the total increase, 25% was due to US ethanol subsidies and 75% was due to the increase in the...
Tipo: Conference Paper or Presentation Palavras-chave: Catfish; Price; Catfish feed; Ethanol; Autoregressive distributed lag model; ARDL; Demand and Price Analysis; Research Methods/ Statistical Methods.
Ano: 2008 URL: http://purl.umn.edu/46248
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ESTIMATION OF HOUSEHOLD BRAND-SIZE CHOICE MODELS FOR SPAGHETTI PRODUCTS WITH SCANNER DATA AgEcon
Park, Changwon; Senauer, Benjamin.
The A.C. Nielson household scanner panel is used to analyze factors affecting brand-size choices for spaghetti. These data link product purchases, which are scanned, with household demographics and market information on the store where purchased. A multinominal logit model and a nested logit model are specified and estimated. In addition to the effects of inventory and brand loyalty, the most interesting results relate to the price elasticities of choice probabilities. These elasticities are much more elastic than those found in traditional food demand analysis. Different brands and sizes of spaghetti products on the same supermarket shelf are very close substitutes for the consumer.
Tipo: Working or Discussion Paper Palavras-chave: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.
Ano: 1996 URL: http://purl.umn.edu/14336
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An Economic Analysis of the Costs of Manufacturing Commercial Feed in North Dakota AgEcon
Austin, Philip E.; Nelson, David C..
Tipo: Report Palavras-chave: Agricultural Finance; Demand and Price Analysis.
Ano: 1966 URL: http://purl.umn.edu/104188
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CHANGING PRICES, CHANGING CIGARETTE CONSUMPTION AgEcon
Purcell, Wayne D..
Tipo: Working or Discussion Paper Palavras-chave: Consumer/Household Economics; Demand and Price Analysis.
Ano: 1999 URL: http://purl.umn.edu/14819
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INCOME ELASTICITY AND FUNCTIONAL FORM AgEcon
Beatty, Timothy K.M.; LaFrance, Jeffrey T..
Tipo: Working or Discussion Paper Palavras-chave: Demand and Price Analysis.
Ano: 2004 URL: http://purl.umn.edu/15835
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Demand for Florida fresh specialty citrus AgEcon
Brown, Mark G.; Muraro, Ronald P..
Tipo: Report Palavras-chave: Citrus; Demand; Agribusiness; Demand and Price Analysis; International Relations/Trade.
Ano: 1991 URL: http://purl.umn.edu/52713
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Relações de produção na pecuária leiteira: um estudo de caso das respostas da produção aos preços mensais AgEcon
Ferreira Junior, Silvio; Teixeira, Erly Cardoso.
It is intended to verify the relations between input and products concerning to replaceability or complementarity, as well as the impacts of monthly variations on product prices (milk and meat) and input (fuels, work, concentrate) in the production system in Brazil that possess cows of 2.000 to 3.000 kilograms of milk for nursing. The results show that monthly variations in prices paid or received by producers cause considerable monthly changes in the markets for milk and the input considered.
Tipo: Journal Article Palavras-chave: Profit translog function; Prices; Dairy cattle; Demand and Price Analysis.
Ano: 2005 URL: http://purl.umn.edu/56737
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