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Direct Marketing and the Structure of Farm Sales: An Unconditional Quantile Regression Approach

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  • Park, Timothy A.

Abstract

This paper examines the impact of participation in direct marketing on the entire distribution of farm sales using the unconditional quantile regression (UQR) estimator. Our analysis yields unbiased estimates of the unconditional impact of direct marketing on farm sales and reveals the heterogeneous effects that occur across the distribution of farm sales. The impacts of direct marketing efforts are uniformly negative across the UQR results, but declines in sales tend to grow smaller as sales increase. Producers planning to sell more in local outlets should expect sales to decline. Marketing experts and extension professionals can use this information to guide farmers who are considering initiating or expanding direct marketing activities.

Suggested Citation

  • Park, Timothy A., 2015. "Direct Marketing and the Structure of Farm Sales: An Unconditional Quantile Regression Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-19, May.
    • Handle: RePEc:ags:jlaare:206596
    DOI: 10.22004/ag.econ.206596
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    References listed on IDEAS

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    1. Park Timothy A & Lohr Luanne, 2010. "The Influence of Local Selling Decisions on Organic Farm Incomes," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-21, September.
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    7. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-19, April.
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    10. Timothy Park & Ashok K. Mishra & Shawn J. Wozniak, 2014. "Do farm operators benefit from direct to consumer marketing strategies?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 213-224, March.
    11. ZELLNER, Arnold & KMENTA, Jan & DREZE, Jacques H., 1966. "Specification and estimation of Cobb-Douglas production function models," LIDAM Reprints CORE 12, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

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    2. Astill, G. & Sabasi, D. & Gwatipedza, J., 2018. "Direct Marketing Strategies and Farmers’ Technical Efficiency in U.S. Agriculture," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275917, International Association of Agricultural Economists.
    3. Hajime Seya & Kay W. Axhausen & Makoto Chikaraishi, 2020. "Spatial unconditional quantile regression: application to Japanese parking price data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 351-402, October.
    4. Bonanno, Alessandro & Bimbo, Francesco & Costanigro, Marco & VIscecchia, Rosaria, 2018. "Do Geographic Indication Labels Pay off? Estimating GI’s implicit Price Dispersion in the Italian EVOO Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 274203, Agricultural and Applied Economics Association.
    5. Khanal, Aditya & Mishra, Ashok, 2016. "Are all farms better-off growing organic? An unconditional quantile regression approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235618, Agricultural and Applied Economics Association.
    6. Becca B. R. Jablonski & Nigel Key & Joleen Hadrich & Allie Bauman & Sarah Campbell & Dawn Thilmany & Martha Sullins, 2022. "Opportunities to support beginning farmers and ranchers in the 2023 Farm Bill," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1177-1194, September.
    7. 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.
    8. Cong Pan, 2018. "Supplier Encroachment and Consumer Welfare: Upstream Firm’s Opportunism and Multichannel Distribution," ISER Discussion Paper 1020, Institute of Social and Economic Research, Osaka University.
    9. Pei-An LIAO & Hung-Hao CHANG & Junlin HE & Kannika SAELIW, 2017. "Diversification of marketing strategies among small farms: empirical evidence from family farms in Taiwan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(11), pages 493-501.
    10. 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.
    11. Becca B. R. Jablonski & Martha Sullins & Dawn Thilmany McFadden, 2019. "Community-Supported Agriculture Marketing Performance: Results from Pilot Market Channel Assessments in Colorado," Sustainability, MDPI, vol. 11(10), pages 1-14, May.
    12. 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.
    13. Paudel, Krishna P. & Park, Timothy A. & Pandit, Mahesh, 2017. "U.S. Farmers' Decision to Choose Direct Sales Channel: A Fractional Seemingly Unrelated Semiparametric Model," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258370, Agricultural and Applied Economics Association.
    14. 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).
    15. 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.

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