Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand
AbstractSupermarkets and hypermarkets are expanding rapidly in many developing countries. While consequences for farmers and consumers were analyzed recently, little is known about the implications for traditional retail formats such as wet markets. Using data from a market survey in Thailand and hedonic regression models, we analyze quality and prices for fresh vegetables from different retail outlets. Compared to wet markets, modern retailers sell higher quality at higher prices, indicating that they are primarily targeting better-off consumers. Hence, they are not directly competing for the same market segments. Yet there are signs that modern and traditional markets will gradually converge.
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Bibliographic InfoPaper provided by Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development in its series Discussion Papers with number 108348.
Date of creation: Apr 2011
Date of revision:
supermarkets; modern retailers; traditional wet markets; product quality; vegetables; Thailand; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; C21; L15; Q13;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-08-15 (Agricultural Economics)
- NEP-ALL-2011-08-15 (All new papers)
- NEP-COM-2011-08-15 (Industrial Competition)
- NEP-MKT-2011-08-15 (Marketing)
- NEP-SEA-2011-08-15 (South East Asia)
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