Advanced Search
MyIDEAS: Login

Measuring Food Product Differentiation by Quality Ratings: A Cross-Entropy Analysis of Specialty Coffee e-Auctions

Contents:

Author Info

  • M. Laura Donnet
  • Dave D. Weatherspoon
  • Charles B. Moss

Abstract

Food quality ratings can be used for product differentiation and strategic marketing. This article develops a differentiation measure based on the cross-entropy of two distributions for speciality coffees. It examines whether quality ratings achieve their objectives for speciality coffee supply chains. The estimation, using e-auctions data, indicates that the quality rating is more informative in the Cup of Excellence (CofE) relative to the Q auction. To determine significance, a statistical test for comparing the information measure across different e-auctions and segments of the quality rating was developed. The significant difference between the two auctions is not a surprise as the auctions trade coffee lots of different volumes and the quality evaluation is more important in the case of the CofE, with its jury of renowned coffee experts. The total cross-entropy measure of product differentiation shows that the 100-point quality rating does not carry the same information content and meaning in the two different e-auctions and their respective supply chains. The cross-entropy measure of product differentiation is shown to be a good indicator of the information and the value created throughout the speciality food supply chain. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1477-9552.2009.00225.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 61 (2010)
Issue (Month): 1 ()
Pages: 122-137

as in new window
Handle: RePEc:bla:jageco:v:61:y:2010:i:1:p:122-137

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0021-857X

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Wilson, Adam P. & Wilson, Norbert L., 2013. "The Economics of Quality in the Specialty Coffee Industry: Insights from the Cup of Excellence Auction Programs," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150721, Agricultural and Applied Economics Association.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:61:y:2010:i:1:p:122-137. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.