IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/345075.html
   My bibliography  Save this article

Segmenting food consumption in the Free State province of South Africa

Author

Listed:
  • Botha, F.
  • Taljaard, P.
  • Alemu, Z.
  • Jooste, A.
  • Pelser, A.

Abstract

In this paper the nature of diversity that exists with regard to food consumption in the Free State Province is investigated. Furthermore, this paper also investigates the factors (quality attributes and household characteristics) differentiating these market segments from one another. Four separate steps were followed in an integrated manner in the investigation. Firstly, a representative sample was drawn for the Free State Province food consumers. Households are then segmented into smaller submarkets. The second step involved the use of principal component analysis to correct for the strong and prevalent underlying structure with respect to household preferences. In the final step, a binary logit model was applied to analyse the determinants of the market segments’ food consumption. Five market segments are prevalent in the Free State Province, namely: Cluster 1 (34.7%) – inferior-product consumers; Cluster 2 (23.6%) – at-home (basics) consumers; Cluster 3 (26.6%) – balanced consumers; Cluster 4 (12.3%) – value-added-oriented consumers, and Cluster 5 (2.6%) – high-frequency consumers (broad product range). The final logit model that was applied consisted broadly of economic and non-economic variables. The results show that significant differences prevail amongst the five market segments, for both economic and non-economic variables included in the model. Producers, marketers and other participants in the food value chain can use this as a basis from which appropriate marketing strategies could be developed, formalised and implemented.

Suggested Citation

  • Botha, F. & Taljaard, P. & Alemu, Z. & Jooste, A. & Pelser, A., 2013. "Segmenting food consumption in the Free State province of South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 51(3), February.
    • Handle: RePEc:ags:agreko:345075
    DOI: 10.22004/ag.econ.345075
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345075/files/Segmenting%20food%20consumption%20in%20the%20Free%20State%20province%20of%20South%20Africa.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.345075?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Oyewumi, Olubukola Ayodeju & Jooste, Andre, 2006. "Measuring the determinants of pork consumption in Bloemfontein, Central South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(2), pages 1-13, June.
    2. Jean Kinsey & Ben Senauer, 1996. "Consumer Trends and Changing Food Retailing Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1187-1191.
    3. Kohl, David M., 2001. "Mega Trends In Agriculture: Implications For The Food Distribution System," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(1), pages 1-4, March.
    4. Baker, Gregory A. & Crosbie, Peter J., 1993. "Measuring Food Safety Preferences: Identifying Consumer Segments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-11, December.
    5. Ben Senauer & David Sahn & Harold Alderman, 1986. "The Effect of the Value of Time on Food Consumption Patterns in Developing Countries: Evidence from Sri Lanka," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 920-927.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ags:ijag24:345075 is not listed on IDEAS
    2. Ziehl, Amanda & Thilmany, Dawn D. & Umberger, Wendy J., 2005. "A Cluster Analysis of Natural Beef Product Consumers by Shopping Behavior, Importance of Production Attributes, and Demographics," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-9, March.
    3. Rodríguez, Elsa Mirta M. & Berges, Miriam & Casellas, Karina & Di Paola, Rosángela & Lupín, Beatriz & Garrido, Laura & Gentile, Natacha, 2002. "Consumer behaviour and supermarkets in Argentina," Nülan. Deposited Documents 392, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. Alessandro Bonanno & Rigoberto A. Lopez, 2007. "Competition Effects of Supermarket Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 555-568.
    5. Alessandro Bonanno & Rigoberto A. Lopez, 2004. "Private Labels, Retail Configuration, and Fluid Milk Prices," Food Marketing Policy Center Research Reports 082, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    6. Antonovitz, Frances & Liu, Donald J., 1996. "A HEDONIC PRICE STUDY OF PESTICIDES IN FRUITS AND VEGETABLES; Proceedings of the Fifth Joint Conference on Agriculture, Food, and the Environment, June 17-18, 1996, Padova, Italy," Working Papers 14389, University of Minnesota, Center for International Food and Agricultural Policy.
    7. Ronald B. Larson, 1998. "Regionality of food consumption," Agribusiness, John Wiley & Sons, Ltd., vol. 14(3), pages 213-226.
    8. Malin Sundström & Anita Radon, 2015. "Utilizing The Concept Of Convenience As A Business Opportunity In Emerging Markets," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 6(2).
    9. Brian Innes & John Cranfield, 2009. "Consumer preference for production-derived quality: analyzing perceptions of premium chicken production methods," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 395-411.
    10. Qiu, Chun & Zhao, Ping, 2019. "Mobile coupon acquisition and redemption for restaurants: The effects of store clusters as a double-edged sword," Journal of Business Research, Elsevier, vol. 103(C), pages 163-172.
    11. Diagana, Bocar & Reardon, Thomas, 1999. "Household consumption responses to the franc CFA devaluation: evidence from urban Senegal," Food Policy, Elsevier, vol. 24(5), pages 495-515, October.
    12. Doss, Cheryl R., 1996. "Women'S Bargaining Power In Household Economic Decisions: Evidence From Ghana," Staff Papers 13517, University of Minnesota, Department of Applied Economics.
    13. Bard, Sharon K. & Craig, Dawn J. & Boehlje, Michael, 2002. "Borrower Preferences In The Agricultural Credit Market: A Conjoint Analysis," Staff Papers 28628, Purdue University, Department of Agricultural Economics.
    14. Vander Mey, Brenda J., 2004. "The Globalization Of Food And How Americans Feel About It: Results Of Two Surveys," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(1), pages 1-12, March.
    15. Vemireddy, Vidya & Pingali, Prabhu L., 2021. "Seasonal time trade-offs and nutrition outcomes for women in agriculture: Evidence from rural India," Food Policy, Elsevier, vol. 101(C).
    16. Baker, Gregory A. & Burnham, Thomas A., 2001. "Consumer Response To Genetically Modified Foods: Market Segment Analysis And Implications For Producers And Policy Makers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-17, December.
    17. Maria Travisi, Chiara & Nijkamp, Peter & Vindigni, Gabriella, 2006. "Pesticide risk valuation in empirical economics: a comparative approach," Ecological Economics, Elsevier, vol. 56(4), pages 455-474, April.
    18. Christensen, Lee A., 2002. "Soil, Nutrient, And Water Management Systems Used In U.S. Corn Production," Agricultural Information Bulletins 33618, United States Department of Agriculture, Economic Research Service.
    19. Dsouza, Alwin & Mishra, Ashok K. & Tripathi, Amarnath, 2018. "Improving Diet Quality through Off-Farm Work: Empirical Evidence from India," 2018 Annual Meeting, August 5-7, Washington, D.C. 274494, Agricultural and Applied Economics Association.
    20. Alphonce, Roselyne & Alfnes, Frode & Sharma, Amit, 2014. "Consumer vs. citizen willingness to pay for restaurant food safety," Food Policy, Elsevier, vol. 49(P1), pages 160-166.
    21. Blaylock, James R. & Variyam, Jayachandran N. & Lin, Biing-Hwan, 1999. "Maternal Nutrition Knowledge and Children’s Diet Quality and Nutrient Intakes," Food Assistance and Nutrition Research Reports 333966, United States Department of Agriculture, Economic Research Service.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:345075. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.