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The myth of retail pricing policy for developing organic vegetable markets

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  • Wu, Xiang
  • Xiong, Jie
  • Li, Haitao
  • Wu, Han

Abstract

This paper examines the effects of retail pricing policy on the diffusion process of organic vegetables. Based on a unique dataset consisting of three-year transaction data from an online fresh produce retailer, we modeled the vegetable diffusion process with price and promotion effects, estimated the brand-level generalized Bass model and compared these effects on organic as well as conventional vegetables. Our findings are two major parts. First, only regular price exhibits significant effects on organic vegetable diffusion, while promotion depth or frequency does not. Furthermore, the negative effect of regular price is stronger for organic vegetables than for conventional vegetables.

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  • Wu, Xiang & Xiong, Jie & Li, Haitao & Wu, Han, 2019. "The myth of retail pricing policy for developing organic vegetable markets," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 8-13.
    • Handle: RePEc:eee:joreco:v:51:y:2019:i:c:p:8-13
    DOI: 10.1016/j.jretconser.2019.02.013
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    2. Julia Wojciechowska-Solis & Anetta Barska, 2021. "Exploring the Preferences of Consumers’ Organic Products in Aspects of Sustainable Consumption: The Case of the Polish Consumer," Agriculture, MDPI, vol. 11(2), pages 1-17, February.
    3. Yin, Zhengqing & Li, Bo & Li, Shufei & Ding, Junqi & Zhang, Lingxian, 2022. "Key influencing factors of green vegetable consumption in Beijing, China," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    4. Hanna Górska-Warsewicz & Sylwia Żakowska-Biemans & Dagmara Stangierska & Monika Świątkowska & Agnieszka Bobola & Julita Szlachciuk & Maksymilian Czeczotko & Karol Krajewski & Ewa Świstak, 2021. "Factors Limiting the Development of the Organic Food Sector—Perspective of Processors, Distributors, and Retailers," Agriculture, MDPI, vol. 11(9), pages 1-22, September.
    5. Boobalan, Kirubaharan & Nachimuthu, Geetha Sulur, 2020. "Organic consumerism: A comparison between India and the USA," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).

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