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Marketing-Management Impacts on Produce Sales

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  • Durham, Catherine A.
  • Johnson, Aaron J.
  • McFetridge, Marc V.

Abstract

Produce departments are important to the profitability and competitiveness of grocery stores. Understanding how variables beyond price and seasonality impact the demand and ultimately sales for produce is vital. This study finds display size and the use of multiple displays to be the most powerful tools (after price) that produce managers have available to them, but only with the right products. Also, point-of-purchase signage is found to have limited impact. These findings are based on the estimation of a demand system of fruits with prices, advertising size and location, display size (including multiple displays), and product origin among the explanatory variables.

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Bibliographic Info

Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

Volume (Year): 38 (2007)
Issue (Month): 2 (July)
Pages:

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Handle: RePEc:ags:jlofdr:43494

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Web page: http://fdrs.ag.utk.edu/
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Related research

Keywords: Agribusiness; Marketing;

References

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  1. Schaffner, David J., 2002. "United States Produce Markets In Transition- Today And Tomorrow," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(02), July.
  2. Richards, Timothy J., 2000. "The Impact Of Promotion And Advertising: A Latent Class Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December.
  3. Cook, Roberta L., 1990. "Challenges And Opportunities In The U.S. Fresh Produce Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 21(1), February.
  4. Carlos Arnade & Daniel Pick, 2000. "Seasonal oligopoly power: the case of the US fresh fruit market," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 969-977.
  5. Todd M. Schmit & Harry M. Kaiser, 2004. "Decomposing the Variation in Generic Advertising Response over Time," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 139-153.
  6. Durham, Catherine A. & McFetridge, Marc V. & Johnson, Aaron J., 2005. "The Development of a Quality Scale to Measure the Impact of Quality on Supermarket Fruit Demand," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(01), March.
  7. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
  8. Perosio, Debra J. & McLaughlin, Edward W. & Cuellar, Sandra & Park, Kristen, 2001. "Supply Chain Management in the Produce Industry," Research Bulletins 122645, Cornell University, Department of Applied Economics and Management.
  9. Philip R. Vande Kamp & Harry M. Kaiser, 2000. "Optimal Temporal Policies in Fluid Milk Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 274-286.
  10. Jagmohan S. Raju, 1992. "The Effect of Price Promotions on Variability in Product Category Sales," Marketing Science, INFORMS, vol. 11(3), pages 207-220.
  11. You, Zhikang & Epperson, James E. & Huang, Chung L., 1996. "A Composite System Demand Analysis For Fresh Fruits And Vegetables In The United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), October.
  12. Jacobson, Robert & Obermiller, Carl, 1990. " The Formation of Expected Future Price: A Reference Price for Forward-Looking Consumers," Journal of Consumer Research, University of Chicago Press, vol. 16(4), pages 420-32, March.
  13. Herrmann, Roland & Roeder, Claudia, 1998. "Some neglected issues in food demand analysis: retail-level demand, health information and product quality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
  14. Nayga, Rodolfo M., Jr., 1995. "Determinants Of U.S. Household Expenditures On Fruit And Vegetables: A Note And Update," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(02), December.
  15. Bronnenberg, B.J.J.A.M. & Wathieu, L., 1996. "Asymmetric Promotion Effects and Brand Positioning," Open Access publications from Tilburg University urn:nbn:nl:ui:12-339978, Tilburg University.
  16. Liefeld, John & Heslop, Louise A, 1985. " Reference Prices and Deception in Newspaper Advertising," Journal of Consumer Research, University of Chicago Press, vol. 11(4), pages 868-76, March.
  17. Bobby G. Beamer & Warren P. Preston, 1993. "Organizational structures and strategic management of produce marketing in retail supermarkets," Agribusiness, John Wiley & Sons, Ltd., vol. 9(2), pages 103-117.
  18. Winfree, Jason A. & McCluskey, Jill J. & Mittelhammer, Ronald C. & Gutman, Paula, 2004. "Seasonal Oligopoly Power In The D'Anjou Pear Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(02), July.
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