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Combining discrete and continuous mixing distributions to identify niche markets for food

Author

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  • Danny Campbell
  • Edel Doherty

Abstract

This paper explores the demand and willingness to pay (WTP) for value-added services to chicken. Since the demand for such services are likely to be highly segmented and often applies only to a market niche, models based on assumptions of homogeneity among consumers are likely to be inappropriate. For this reason, this paper combines discrete and continuous mixing distributions to concurrently identify the size of the niche market and the heterogeneity among consumers within the market niche. Failing to account for the niche market nature of value-added services is shown to have implications for predictions of WTP, demand and total revenue. , Oxford University Press.

Suggested Citation

  • Danny Campbell & Edel Doherty, 2013. "Combining discrete and continuous mixing distributions to identify niche markets for food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 287-312, March.
    • Handle: RePEc:oup:erevae:v:40:y:2013:i:2:p:287-312
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    File URL: http://hdl.handle.net/10.1093/erae/jbs018
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    Citations

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    Cited by:

    1. Seda Erdem & Danny Campbell & Arne Risa Hole, 2015. "Accounting for Attribute‐Level Non‐Attendance in a Health Choice Experiment: Does it Matter?," Health Economics, John Wiley & Sons, Ltd., vol. 24(7), pages 773-789, July.
    2. Linhai Wu & Xiaolin Liu & Dian Zhu & Hongsha Wang & Shuxian Wang & Lingling Xu, 2015. "Simulation of Market Demand for Traceable Pork with Different Levels of Safety Information: A Case Study in Chinese Consumers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 513-537, December.
    3. Yuan, Yuan & You, Wen & Boyle, Kevin J., 2015. "A guide to heterogeneity features captured by parametric and nonparametric mixing distributions for the mixed logit model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205733, Agricultural and Applied Economics Association.
    4. Erlend Dancke Sandorf & Danny Campbell, 2019. "Accommodating satisficing behaviour in stated choice experiments," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(1), pages 133-162.
    5. Vera Sadovska & Lena Ekelund Axelson & Cecilia Mark-Herbert, 2020. "Reviewing Value Creation in Agriculture—A Conceptual Analysis and a New Framework," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    6. Meginnis, Keila & Campbell, Danny, 2017. "Students’ preferences for attributes of postgraduate economics modules: Evidence from a multi-profile best-worst scaling survey," International Review of Economics Education, Elsevier, vol. 24(C), pages 18-27.
    7. Franceschinis, Cristiano & Thiene, Mara & Scarpa, Riccardo & Rose, John & Moretto, Michele & Cavalli, Raffaele, 2017. "Adoption of renewable heating systems: An empirical test of the diffusion of innovation theory," Energy, Elsevier, vol. 125(C), pages 313-326.
    8. Sandorf, Erlend Dancke & Campbell, Danny & Hanley, Nick, 2017. "Disentangling the influence of knowledge on attribute non-attendance," Journal of choice modelling, Elsevier, vol. 24(C), pages 36-50.
    9. Yang, Wei & Rennie, Grant & Ledgard, Stewart & Mercer, Geoff & Lucci, Gina, 2020. "Impact of delivering ‘green’ dairy products on farm in New Zealand," Agricultural Systems, Elsevier, vol. 178(C).
    10. Campbell, Danny & Hensher, David A. & Scarpa, Riccardo, 2014. "Bounding WTP distributions to reflect the ‘actual’ consideration set," Journal of choice modelling, Elsevier, vol. 11(C), pages 4-15.
    11. Yang, W. & Renwich, A., 2018. "Consumer Willingness to Pay Price Premium for Credence Attributes of Livestock Products A Meta-Analysis method," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277320, International Association of Agricultural Economists.
    12. Balogh, Péter & Békési, Dániel & Gorton, Matthew & Popp, József & Lengyel, Péter, 2016. "Consumer willingness to pay for traditional food products," Food Policy, Elsevier, vol. 61(C), pages 176-184.
    13. Sadovska, V., 2018. "Sustainable value creation in the agricultural sector. A literature review," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276984, International Association of Agricultural Economists.
    14. Santeramo, Fabio Gaetano & Lamonaca, Emilia, 2020. "Objective risk and subjective risk: The role of information in food supply chains," MPRA Paper 104515, University Library of Munich, Germany.
    15. Van Loo, Ellen J. & Caputo, Vincenzina & Nayga, Rodolfo M. & Verbeke, Wim, 2014. "Consumers’ valuation of sustainability labels on meat," Food Policy, Elsevier, vol. 49(P1), pages 137-150.
    16. Marescotti, Maria Elena & Caputo, Vincenzina & Demartini, Eugenio & Gaviglio, Anna, 2020. "Consumer preferences for wild game cured meat label: do attitudes towards animal welfare matter?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(4), June.

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