International Flower Networks: Transparency and Risks in Marketing Channel Choice
Two thirds of Kenyan cut flowers are marketed through Dutch flower auctions, while the remainder is marketed directly to retailers. Auctions do not restrict the volumes marketed; however price determination is based on a spot market. A Transaction Cost approach is used to investigate the differences in marketing costs between the channels. The results suggest that there are no differences between the channels in terms of uncertainty about prices, finding buyers or transparency of quality standards. Auction growers pay a higher marketing fee but they have significantly fewer office employees and flower varieties compared to growers who market directly.
|Date of creation:||2006|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jill E. Hobbs, 1996. "Transaction costs and slaughter cattle procurement: Processors' selection of supply channels," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 509-523.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae99:7759. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.