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Using Price Rigidities to Explain Pricing Strategies in the Organic Milk Chain

Author

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  • Hellberg-Bahr, Anneke
  • Pfeuffer, Martin
  • Spiller, Achim
  • Brümmer, Bernhard

Abstract

The stickiness of prices and reasons for price changes are widely discussed in market analyses and marketing theory. Explanations and reasons of rigidities have shown that prices do not change as often in small retail stores and in markets with high concentration (Powers and Powers 2001, Hannan and Berger 1991). For organic products, until now there have been few clear results about pricing strategies and it can be assumed that consumers pay premium prices for organic products with increasing market shares of the sector. Hence the opportunities regarding pricing behaviour and pricing strategies in the organic milk supply chain up to now have not been discussed. This paper strives to close this research gap by examining rigidities in the organic milk market on the basis of organic retail scanner data. Using these results, pricing strategies in the organic retail sector are discussed.

Suggested Citation

  • Hellberg-Bahr, Anneke & Pfeuffer, Martin & Spiller, Achim & Brümmer, Bernhard, 2011. "Using Price Rigidities to Explain Pricing Strategies in the Organic Milk Chain," 2011 International European Forum, February 14-18, 2011, Innsbruck-Igls, Austria 122003, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi11:122003
    DOI: 10.22004/ag.econ.122003
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    References listed on IDEAS

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    Cited by:

    1. Bocionek, Milena & Anders, Sven M. & Kiesel, Kristin, 2012. "Estimating price rigidity in vertically differentiated food product categories with private labels," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124529, Agricultural and Applied Economics Association.
    2. Nadine Würriehausen & Rico Ihle & Sebastian Lakner, 2015. "Price relationships between qualitatively differentiated agricultural products: organic and conventional wheat in Germany," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 195-209, March.
    3. George Atanasoaie, 2012. "Price on the Organic Food Market," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(4), pages 5-16.
    4. Atanasoaie George Sebastian, 2013. "The Price On The Organic Product Market," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 100-106, August.

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