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Determinants of Retail Outlet Choice for Fresh Fruits and Vegetables in Tagum City, Philippines

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  • Lastimado, Russel Mae P.
  • Romo, Glory Dee A.
  • Sarmiento, Jon Marx P.
  • Shuck, Vlademir A.

Abstract

A continued dominance of traditional retail outlets is observed despite rapid modern retail expansion. To examine this trend in a predominantly agricultural area, a case study of Tagum City is conducted where developments in the retail food industry are presented and the determinants of retail outlet choice for fresh fruits and vegetables are identified. Multinomial and binary logit models were estimated to analyze the responses of 200 consumer-respondents among urban villages in Tagum City from 2011 to 2012. These were supplemented by key informant interviews. The results suggest that there is a potential for further expansion of the modern retail chain in Tagum City despite consumers’ preference for traditional retail outlets. The top retail outlet attributes for fruit and vegetable buyers are convenience of location, price, product quality, and speed of service. These findings have implications on consumer welfare, retail competition, and smallholder farmers.

Suggested Citation

  • Lastimado, Russel Mae P. & Romo, Glory Dee A. & Sarmiento, Jon Marx P. & Shuck, Vlademir A., 2016. "Determinants of Retail Outlet Choice for Fresh Fruits and Vegetables in Tagum City, Philippines," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 2(2), December.
    • Handle: RePEc:ags:pjemad:309282
    DOI: 10.22004/ag.econ.309282
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    References listed on IDEAS

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    1. Jerry Hausman & Ephraim Leibtag, 2007. "Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1157-1177.
    2. John Humphrey, 2007. "The supermarket revolution in developing countries: tidal wave or tough competitive struggle?," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 433-450, July.
    3. Digal, Larry N., 2001. "An Analysis of the Structure of the Philippine Retail Food Industry," Philippine Journal of Development PJD 2001 Vol. XXVIII No. , Philippine Institute for Development Studies.
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