Factors Influencing Demand for a Producer-Owned Beef Retail Outlet
As the farm-to-retail price spread continues to grow, come cattle producers a beginning to consider integrating into the retail sector. Such a venture would require large investments in capital with uncertain return. This study seeks to determine the potential success of a stand-alone retail outlet selling â€œall naturalâ€ beef in an affluent area of Jackson, MS. Using choice-based conjoint analysis, demand for the new retail outlet is modeled as a function of the beef price at the store, distance of the store from consumersâ€™ homes, distance of the store from consumersâ€™ typical grocery store, and price of beef at substitute grocery stores. Simulation results suggest the proposed outlet could be a profitable venture, depending upon location and beef price.
Volume (Year): 36 (2004)
Issue (Month): 01 (April)
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