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What Adds Value in Specialty Coffee? Managerial Implications from Hedonic Price Analysis of Central and South American E-Auctions

  • Donnet, M. Laura
  • Weatherspoon, Dave D.
  • Hoehn, John P.

We analyze price and quality information at the procurement level in the specialty coffee supply chain using data from small and large volume e-auctions. Hedonic price equations reveal that the Cup of Excellence auction is a more differentiated market disclosing more information about coffee values associated with ratings, rankings, quantities available, and country reputations whereas information in the Q auction is more limited and tends to be remunerated to a lesser extent. These results indicate that there are different business models and valuation of product characteristics within the specialty coffee industry. Management implications are drawn for specialty coffee producers and roasters.

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File URL: http://purl.umn.edu/8162
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Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 10 (2007)
Issue (Month): 03 ()
Pages:

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Handle: RePEc:ags:ifaamr:8162
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  1. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  2. M. Laura Donnet & Dave D. Weatherspoon & John P. Hoehn, 2008. "Price determinants in top-quality e-auctioned specialty coffees," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 267-276, 05.
  3. Pierre Combris & Sebastien Lecocq & Michael Visser, 2000. "Estimation of a hedonic price equation for Burgundy wine," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 961-967.
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