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What Adds Value in Specialty Coffee? Managerial Implications from Hedonic Price Analysis of Central and South American E-Auctions AgEcon
Donnet, M. Laura; Weatherspoon, Dave D.; Hoehn, John P..
We analyze price and quality information at the procurement level in the specialty coffee supply chain using data from small and large volume e-auctions. Hedonic price equations reveal that the Cup of Excellence auction is a more differentiated market disclosing more information about coffee values associated with ratings, rankings, quantities available, and country reputations whereas information in the Q auction is more limited and tends to be remunerated to a lesser extent. These results indicate that there are different business models and valuation of product characteristics within the specialty coffee industry. Management implications are drawn for specialty coffee producers and roasters.
Tipo: Journal Article Palavras-chave: Specialty coffee; E-auctions; Hedonic analysis; Business models; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/8162
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Price Determinants in Top Quality E-Auctioned Specialty Coffees AgEcon
Donnet, M. Laura; Weatherspoon, Dave D.; Hoehn, John P..
The US specialty coffee industry has grown from $1 billion in 1990 to $11 billion in 2006 and is expected to continue to grow into the foreseeable future. This growth particularly depends on prices coordinating the specialty coffee supply chain through two-way information exchange between roasters and producers. We analyze the determinants of specialty coffee prices by estimating a hedonic price function for specialty Central and South American coffees traded at e-auctions. We hypothesize that since specialty coffee is a differentiated product, prices will be determined by both sensory and reputation attributes. The results show that prices are influenced by the quality rating, which is a sensory variable, and by the quality rankings established in the...
Tipo: Working or Discussion Paper Palavras-chave: Specialty coffee; Hedonic price analysis; Differentiated food pricing; Sensory attributes; Reputation attributes; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/9310
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