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How Large Commercial Producers Choose Input Suppliers: Expendable Products from Seed to Animal Health

Author

Listed:
  • Borchers, Bryce
  • Roucan-Kane, Maud
  • Alexander, Corinne E.
  • Boehlje, Michael
  • Downey, W. Scott
  • Gray, Allan W.

Abstract

This study uses cluster analysis to identify buying behavior segments of commercial producers who purchase expendable products including seed, crop protection, animal health and feed. For the crop expendable products we find four buying behavior segments: Convenience, Price, Performance, and a fourth segment, called Balance buyers, who equally value the aforementioned factors as well as customer service and support services. For livestock expendable products we find three buying behavior segments: Balance, Price and Performance. We find that producers have product-specific buying behaviors and this is especially true for livestock producers. We discuss the implications of these customer segments for expendable input marketers and sales-people.

Suggested Citation

  • Borchers, Bryce & Roucan-Kane, Maud & Alexander, Corinne E. & Boehlje, Michael & Downey, W. Scott & Gray, Allan W., 2012. "How Large Commercial Producers Choose Input Suppliers: Expendable Products from Seed to Animal Health," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(2), pages 1-20, May.
    • Handle: RePEc:ags:ifaamr:127281
    DOI: 10.22004/ag.econ.127281
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    References listed on IDEAS

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    1. Gloy, Brent A. & Akridge, Jay T., 1999. "Segmenting The Commercial Producer Marketplace For Agricultural Inputs," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(2), pages 1-19.
    2. Roucan-Kane, Maud & Alexander, Corinne E. & Boehlje, Michael & Downey, W. Scott & Gray, Allan W., 2011. "Large Commercial Producer Market Segments for Agricultural Capital Equipment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-18, November.
    3. Alexander, Corinne E. & Wilson, Christine A. & Foley, Daniel H., 2005. "Agricultural Input Market Segments: Who Is Buying What?," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 23(2), pages 1-20.
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    Cited by:

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    2. Kenkel, Phil, 2016. "Implications of Equity Structure on Governance," Miscellaneous Publications 261467, University of Minnesota, Department of Applied Economics.
    3. Kapoor, Sanjeev & Kumar, Niraj, 2021. "Reducing the buyer–seller information asymmetry in agricultural inputs markets in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 34(1), June.
    4. Feeney, Roberto Juan & Harmath, Pedro & Clay, Pablo Mac, 2020. "Brand Loyalty in Argentine Commercial Crop Seed Markets," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 9, April.
    5. Mahendra Kumar Pallapothu & Gary Evans, 2013. "Gauging the Market and Non-Market Forces in Indian Aquaculture Industry for a Strategic Position in Fish Vaccines Market," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(1), pages 41-61, February.

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