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The Changing Structure of Retail Food Stores, Direct Marketing (DM) and Its Impact on Farmers’ Financial Performance

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  • Sene, Seydina
  • Paudel, Krishna P.
  • Park, Timothy A.

Abstract

We examine the changing structure of retail food stores, direct marketing (DM), and its impact on farmers’ financial performance in the United States. We use a maximum simulated likelihood estimation with multinomial treatments and continuous measures of sales to accommodate the treatment effects relative to the base (no direct marketing). Our analyses indicate that on the changing structure of retail food stores, no direct marketing (base case) outlet is the most adopted channel by direct marketers compared to direct market to consumers only (Treatment-1), direct marketing to retailers only (Treatment-2), and direct marketing to both consumers and retailers (Treatment-3). We find that farmers who have chosen no direct marketing option show better earning performance compared to the other treatments or market outlets channel options from which earning decreases by 75%, 19%, and 11%, respectively under Treatment-1, T-Treatment-2 and Treatment-3 from 2008 to 2010. Direct marketers who are more likely to choose either Treatment 1-3 option relative to no direct marketing on the basis of their unobserved characteristics, choose direct marketing less and less.

Suggested Citation

  • Sene, Seydina & Paudel, Krishna P. & Park, Timothy A., 2016. "The Changing Structure of Retail Food Stores, Direct Marketing (DM) and Its Impact on Farmers’ Financial Performance," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235736, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235736
    DOI: 10.22004/ag.econ.235736
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