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Segmenting The Commercial Producer Marketplace For Agricultural Inputs

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  • Gloy, Brent A.
  • Akridge, Jay T.

Abstract

A cluster analysis procedure was used to develop a market segmentation of U.S. crop and livestock farms with annual sales in excess of $100,000. The segments were developed based on the importance of six factors that producers evaluate when selecting input suppliers. The results indicate that four distinct segments exist: Convenience buyers, Balance buyers, Price buyers, and Performance buyers. Differences in preferences across these segments have important implications for the marketing strategies of agricultural input suppliers.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:ifaamr:34209
    DOI: 10.22004/ag.econ.34209
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    References listed on IDEAS

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    1. Brent A. Gloy & Jay T. Akridge & Paul V. Preckel, 1997. "Customer Lifetime Value: An application in the rural petroleum market," Agribusiness, John Wiley & Sons, Ltd., vol. 13(3), pages 335-347.
    2. Alejandro Rosenberg & Calum G. Turvey, 1991. "Identifying Management Profiles of Ontario Swine Producers through Cluster Analysis," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 13(2), pages 201-213.
    3. Larson, Ronald B., 1997. "Food Consumption And Seasonality," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(2), pages 1-9, July.
    4. Glenn Milligan & Martha Cooper, 1985. "An examination of procedures for determining the number of clusters in a data set," Psychometrika, Springer;The Psychometric Society, vol. 50(2), pages 159-179, June.
    5. Kevin J. Bernhardt & John C. Allen & Glenn A. Helmers, 1996. "Using Cluster Analysis to Classify Farms for Conventional/Alternative Systems Research," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(4), pages 599-611.
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    Cited by:

    1. Gloy, Brent A. & Akridge, Jay T. & Whipker, Linda D., 2000. "Sources Of Information For Commercial Farms: Usefulness Of Media And Personal Sources," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(2), pages 1-16.
    2. Schwering, Dorothee Schulze & Hollenbeck, Anna & Krone, Saskia & Spiller, Achim & Lemken, Dominic, 2022. "Crop protection market segmentation: relationship between buyer segments and the use of digital sales channels," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(4), September.
    3. Reimer, Aaron & Downey, W. Scott & Akridge, Jay T., 2009. "Market Segmentation Practices of Retail Crop Input Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 12(1), pages 1-34, February.
    4. Murekezi, Abdoul & Oparinde, Adewale & Birol, Ekin, 2017. "Consumer market segments for biofortified iron beans in Rwanda: Evidence from a hedonic testing study," Food Policy, Elsevier, vol. 66(C), pages 35-49.
    5. Matthew Gorton & John White & Svetlana Chernyshova & Alexander Skripnik & Tatiana Vinichenko & Mikhail Dumitrasco & Galina Soltan, 2003. "The reconfiguration of post-Soviet food industries: Evidence from Ukraine and Moldova," Agribusiness, John Wiley & Sons, Ltd., vol. 19(4), pages 409-424.
    6. Annabell Franz & Christian Schaper & Achim Spiller & Ludwig Theuvsen, 2010. "Geschäftsbeziehungen zwischen Landwirten und Lohnunternehmen: Ergebnisse einer empirischen Analyse," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 195-230.
    7. Joseph I Amuka & Robinson I Nduaguba & Anthony O Agu & Chinasa Urama & Bernadette C Onah, 2020. "Segmentation in Agriculture and Farmers’ Productivity: Evidence from Survey of Poultry Farms," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 7(1), pages 53-57.
    8. Stark, Christopher E. & Moss, Leeann E. & Hahn, David E., 2002. "Farm Business Goals And Competitive Advantage," 2002 Annual meeting, July 28-31, Long Beach, CA 19618, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Gloy, Brent A. & Akridge, Jay T., 1999. "Segmenting The Commercial Producer Market For Agricultural Inputs," 1999 Annual meeting, August 8-11, Nashville, TN 21592, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Ringelberg, Josiah & Gunderson, Michael & Widmar, David, 2016. "Strategies and Time Allocation of Large, Commercial Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2016, pages 1-20.
    11. Iraizoz, Belen & Gorton, Matthew & Davidova, Sophia, 2007. "Segmenting farms for analysing agricultural trajectories: A case study of the Navarra region in Spain," Agricultural Systems, Elsevier, vol. 93(1-3), pages 143-169, March.
    12. Feeney, Roberto & Berardi, Valeria, 2013. "Seed Market Segmentation: How Do Argentine Farmers Buy Their Expendable Inputs?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(1), pages 1-24, February.
    13. Maud Roucan‐Kane & Corinne Alexander & Michael D. Boehlje & Scott W. Downey & Allan W. Gray, 2010. "Agricultural financial market segments," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(2), pages 231-244, August.
    14. Pradeep Kumar Mohanty & N. Senthil Kumar, 2017. "Measuring farmer’s satisfaction and brand loyalty toward Indian fertilizer brands using DEA," Journal of Brand Management, Palgrave Macmillan, vol. 24(5), pages 467-488, October.
    15. Florian Diekmann & Cäzilia Loibl & Marvin T. Batte, 2009. "The Economics of Agricultural Information: Factors Affecting Commercial Farmers’ Information Strategies in Ohio," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 853-872.
    16. Gloy, Brent A. & Akridge, Jay T., 2000. "Computer And Internet Adoption On Large U.S. Farms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-16.
    17. Alexander, Corinne E. & Wilson, Christine A. & Foley, Daniel H., 2004. "Agricultural Input Market Segments: Who Is Buying?," 2004 Annual meeting, August 1-4, Denver, CO 19997, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Maria José Palma Lampreia DOS SANTOS, 2013. "Segmenting farms in European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(2), pages 49-57.
    19. Bensemann, Jessica & Shadbolt, Nicola, 2015. "Farmers’ Choice of Marketing Strategy: A Study of New Zealand Lamb Producers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-33, September.
    20. Jay T. Akridge, 2003. "E-Business in the Agricultural Input Industries," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 3-13.
    21. 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.
    22. Etumnu, Chinonso & Gray, Allan W., 2020. "A Clustering Approach to Understanding Farmers’ Success Strategies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(3), pages 335-351, August.

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