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Sales impacts of direct marketing choices: treatment effects with multinomial selectivity

Author

Listed:
  • Timothy Park
  • Krishna Paudel
  • Seydina Sene

Abstract

Producers who are planning to sell using direct marketing to consumers only or to both consumers and retailers experience declines in total sales. Based on survey data for US farmers from 2008 to 2010, the earnings decline is 71.3 per cent when marketing direct to consumers and 36.8 per cent for the diversified marketing decision. The direct marketing penalty is robust to inclusion of important demographic factors, farm experience and use of the internet, and characteristics of the farm operation such as crop choices and input use. Direct marketing is associated with higher sales declines for female farmers, highlighting a distributional impact on farmers that has not been discussed.

Suggested Citation

  • Timothy Park & Krishna Paudel & Seydina Sene, 2018. "Sales impacts of direct marketing choices: treatment effects with multinomial selectivity," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(3), pages 433-453.
    • Handle: RePEc:oup:erevae:v:45:y:2018:i:3:p:433-453.
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    File URL: http://hdl.handle.net/10.1093/erae/jbx038
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    Citations

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    Cited by:

    1. Pierre Chiaverina & Sophie Drogué & Florence Jacquet & Larry Lev & Robert King, 2023. "Does short food supply chain participation improve farm economic performance? A meta‐analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 400-413, May.
    2. Timothy Park & Steve Martinez & Mohammed Ibrahim, 2024. "Sales performance of direct food marketers: African American‐led operations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 255-274, March.
    3. Jichun Zhao & Hongbiao Wang & Jianxin Guo, 2021. "Smog Avoidance Investment While Improving Air Quality: Health Demand or Risk Aversion? Evidence from Cities in China," IJERPH, MDPI, vol. 18(15), pages 1-21, July.
    4. Blaufus, Kay & Lorenz, Daniela & Milde, Michael & Peuthert, Benjamin & Schwäbe, Alexander N., 2022. "Negotiating with the tax auditor: Determinants of tax auditors' negotiation strategy choice and the effect on firms’ tax adjustments," Accounting, Organizations and Society, Elsevier, vol. 97(C).
    5. Aleksandra Tošović-Stevanović & Vladimir Ristanović & Dragan Ćalović & Goran Lalić & Milena Žuža & Gorica Cvijanović, 2020. "Small Farm Business Analysis Using the AHP Model for Efficient Assessment of Distribution Channels," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    6. Brian Lee & Jhih‐Yun Liu & Hung‐Hao Chang, 2020. "The choice of marketing channel and farm profitability: Empirical evidence from small farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 402-421, June.
    7. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    8. Key, Nigel, . "Direct-to-Consumer Marketing and the Survival and Growth of Beginning Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).

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