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Ecological characteristics and new competitiveness strategies in fresh vegetables market

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  • Cembalo, Luigi
  • Cicia, Gianni
  • Del Giudice, Teresa
  • Scarpa, Riccardo
  • Tagliafierro, Carolina

Abstract

The intense process of internationalisation of the food market is giving rise to new competitive scenarios. The growth of market shares by new export countries, along with other consumer and retailer's issues impose different marketing policies for agri-food products. In particular, a wider awareness of consumers for environmental and health issues is modifying the structure of demand for fresh products. In the past, the country of origin and a convenient quality/price ratio were the main strategic strengths for gaining and maintaining international market shares . Nowadays market shares are gained by moving towards new product attributes, namely environment friendliness and food safety. This paper aims to suggesting new and more successful marketing strategies. The case study is the German market of cherry tomatoes. An analysis of German consumer preference was performed on stated choice data. Results provide interesting insights. Product attributes related to the environment are found to be relevant. As these are defined as 'faith' attributes, we speculate that German consumers refer to product origin country as a proxy of its environmental aspects. Two separate competitive segments emerge, one with a higher level of environmental quality (Germany and Italy), and Turkey, Spain, France and Holland. Finally, results point out how policies need to be redesigned and focused on new and more complex issues expressed by consumers in modern and developed markets marketing.

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File URL: http://purl.umn.edu/7875
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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 105th Seminar, March 8-10, 2007, Bologna, Italy with number 7875.

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Date of creation: 2007
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Handle: RePEc:ags:eaa105:7875

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Related research

Keywords: competitiveness strategies; cherry tomato German market; environmental friendly; fresh vegetables; Mixed Nested Logit; International Relations/Trade; Marketing;

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  1. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
  2. Daniel Hassan & Sylvette Monier-Dilhan, 2006. "National brands and store brands: Competition through public quality labels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 21-30.
  3. Anglin, Paul M & Gencay, Ramazan, 1996. "Semiparametric Estimation of a Hedonic Price Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 633-48, Nov.-Dec..
  4. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
  5. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
  6. Joseph A. Herriges & Daniel J. Phaneuf, 2002. "Inducing Patterns of Correlation and Substitution in Repeated Logit Models of Recreation Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1076-1090.
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