IDEAS home Printed from https://ideas.repec.org/a/ags/jlofdr/27056.html
   My bibliography  Save this article

Strategic Choices In Produce Marketing: Issues Of Compatible Use And Exclusion Costs

Author

Listed:
  • Codron, Jean-Marie
  • Sterns, James A.
  • Reardon, Thomas

Abstract

Fresh produce suppliers in Europe and the United States use a mix of price and non-price marketing strategies. This paper shows that these strategies create, using Mancur Olson's terms, two collective goods: overall consumer confidence in the market's ability to deliver credence attributes, and overall consumer satisfaction with the experience attributes of fresh produce. The characteristics of these two collective goods, i.e., their compatible use and high costs of exclusion, influence the costs, effectiveness, and nature of the marketing strategies of firms. This paper presents examples from the fresh produce industries of Europe and the U.S. to show how compatible-use and high-exclusion costs influence firm strategies. It concludes that there are unavoidable interdependencies that create a need for collective action -- a need that will increase as consumer and retailer demand for quality attributes in fresh produce increases.

Suggested Citation

  • Codron, Jean-Marie & Sterns, James A. & Reardon, Thomas, 2003. "Strategic Choices In Produce Marketing: Issues Of Compatible Use And Exclusion Costs," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-12, November.
    • Handle: RePEc:ags:jlofdr:27056
    DOI: 10.22004/ag.econ.27056
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/27056/files/34030001.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.27056?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. Huang, Chung L., 1991. "Organic Foods Attract Consumers for the Wrong Reasons," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 6(3), pages 1-4.
    2. Becker, Geoffrey S., 1992. "HACCP: Prescription for Safer Food Or Smokescreen for Deregulation?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 7(2), pages 1-2.
    3. Crampes, Claude & Hollander, Abraham, 1995. "Duopoly and quality standards," European Economic Review, Elsevier, vol. 39(1), pages 71-82, January.
    4. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    5. Mario F. Teisl & Brian Roe & Alan S. Levy, 1999. "Ecocertification: Why It May Not Be a “Field of Dreams”," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1066-1071.
    6. Blend, Jeffrey R. & van Ravenswaay, Eileen O., 1998. "Consumer Demand For Ecolabeled Apples: Survey Methods And Descriptive Results," Staff Paper Series 11645, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Unnevehr, Laurian J. & Jensen, Helen H., 1999. "The economic implications of using HACCP as a food safety regulatory standard," Food Policy, Elsevier, vol. 24(6), pages 625-635, December.
    8. Uri Ronnen, 1991. "Minimum Quality Standards, Fixed Costs, and Competition," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 490-504, Winter.
    9. Laurian J. Unnevehr & Jay Y. Miller & Miguel I. Gómez, 1999. "Ensuring Food Safety and Quality in Farm-Level Production: Emerging Lessons from the Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1096-1101.
    10. Olivier Gergaud & Annick Vignes, 2000. "Émergence et dynamique du phénomène de réputation - Le vin de Champagne : entre savoir-faire et faire savoir," Revue d'Économie Industrielle, Programme National Persée, vol. 91(1), pages 55-74.
    11. John P. Reganold & Jerry D. Glover & Preston K. Andrews & Herbert R. Hinman, 2001. "Sustainability of three apple production systems," Nature, Nature, vol. 410(6831), pages 926-930, April.
    12. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    13. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    14. Baker, Gregory A., 1998. "Strategic Implications Of Consumer Food Safety Preferences," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(4), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Magali Aubert & Zouhair Bouhsina & Jean Marie Codron & Sylvain Rousset, 2013. "Pesticide safety risk, food chain organization, and the adoption of sustainable farming practices. The case of Moroccan early tomatoes," Post-Print hal-02806083, HAL.
    2. Codron, Jean-Marie & Adanacioğlu, Hakan & Aubert, Magali & Bouhsina, Zouhair & El Mekki, Abdelkader Ait & Rousset, Sylvain & Tozanli, Selma & Yercan, Murat, 2014. "The role of market forces and food safety institutions in the adoption of sustainable farming practices: The case of the fresh tomato export sector in Morocco and Turkey," Food Policy, Elsevier, vol. 49(P1), pages 268-280.
    3. Codron, Jean-Marie & Adanacioğlu, Hakan & Aubert, Magali & Bouhsina, Zouhair & El Mekki, Abdelkader Ait & Rousset, Sylvain & Tozanli, Selma & Yercan, Murat, 2014. "The role of market forces and food safety institutions in the adoption of sustainable farming practices: The case of the fresh tomato export sector in Morocco and Turkey," Food Policy, Elsevier, vol. 49(P1), pages 268-280.

    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. Keith Brouhle & Madhu Khanna, 2007. "Information And The Provision Of Quality Differentiated Products," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 377-394, April.
    2. van de Velde, Liesbeth & D'Hooghe, Katrien & Kuhne, Bianka & Verbeke, Wim, 2005. "Consumer Attitude and Behaviour Towards "Flandria" Quality Labelled Tomatoes," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24748, European Association of Agricultural Economists.
    3. repec:gbl:wpaper:2013-01 is not listed on IDEAS
    4. Haucap, Justus, 2017. "The rule of law and the emergence of market exchange: A new institutional economic perspective," DICE Discussion Papers 276, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    5. Reardon, Thomas & Codron, Jean-Marie & Busch, Lawrence & Bingen, R. James & Harris, Craig, 1999. "Global Change In Agrifood Grades And Standards: Agribusiness Strategic Responses In Developing Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(3-4), pages 1-15.
    6. V. Joseph Hotz & Mo Xiao, 2011. "The Impact of Regulations on the Supply and Quality of Care in Child Care Markets," American Economic Review, American Economic Association, vol. 101(5), pages 1775-1805, August.
    7. Olivier Gergaud & Florine Livat, 2004. "Team versus individual reputations: a model of interaction and some empirical evidence," Cahiers de la Maison des Sciences Economiques bla04015, Université Panthéon-Sorbonne (Paris 1).
    8. Eric Giraud-Héraud & Cristina Grazia & Abdelhakim Hammoudi, 2012. "Explaining the Emergence of Private Standards in Food Supply Chains," Working Papers hal-00749345, HAL.
    9. Giovanni Anania & Rosanna Nisticò, 2004. "Public Regulation as a Substitute for Trust in Quality Food Markets: What if the Trust Substitute cannot be Fully Trusted?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 681-701, December.
    10. Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    11. Steinrücken, Torsten, 2001. "Der Markt für politische Zitronen," Ilmenau Economics Discussion Papers 20, Ilmenau University of Technology, Institute of Economics.
    12. Lamar Pierce & Michael W. Toffel, 2013. "The Role of Organizational Scope and Governance in Strengthening Private Monitoring," Organization Science, INFORMS, vol. 24(5), pages 1558-1584, October.
    13. Heribert Gierl & Julia Koncz, 2007. "Unternehmenswachstum und Internationalität als Qualitätssignale," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 17(4), pages 389-409, January.
    14. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    15. Lupton, Sylvie, 2006. "Il était une fois la qualité," MPRA Paper 5, University Library of Munich, Germany.
    16. Andrew F. Daughety & Jennifer F. Reinganum, 2008. "Imperfect competition and quality signalling," RAND Journal of Economics, RAND Corporation, vol. 39(1), pages 163-183, March.
    17. Arfini, Filippo, 1999. "The value of typical products : the case of Prosciutto di Parma and Parmigiano Reggiano cheese," 67th Seminar, October 28-30, 1999, LeMans, France 241032, European Association of Agricultural Economists.
    18. Brian Logan & Daniel Sutter, 2004. "Newspaper quality, pulitzer prizes, and newspaper circulation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(2), pages 100-112, June.
    19. Egon Franck & Christian Opitz, 2001. "Zur Funktion von Studiengebühren angesichts von Informationsasymmetrien auf Humankapitalmärkten," Schmalenbach Journal of Business Research, Springer, vol. 53(2), pages 91-106, March.
    20. Benito Arruñada, 2004. "Quality safeguards and regulation of online pharmacies," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 329-344, April.
    21. Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-16, April.

    More about this item

    Keywords

    Demand and Price Analysis; Marketing;

    Statistics

    Access and download statistics

    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:jlofdr:27056. 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/fdrssea.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.