IDEAS home Printed from https://ideas.repec.org/a/anr/reseco/v10y2018p253-277.html
   My bibliography  Save this article

Marketing as a Risk Management Mechanism with Applications in Agriculture, Resources, and Food Management

Author

Listed:
  • Amir Heiman

    (Department of Environmental Economics and Management and the Center for Agricultural Economics Research, Robert H. Smith Faculty of Agriculture, Food and Environment, Hebrew University of Jerusalem, Rehovot 7610001, Israel)

  • Lutz Hildebrandt

    (School of Business and Economics, Humboldt University, Berlin D-10099, Germany)

Abstract

Marketing tools, in addition to their role in persuasion and serving as a bridge between production and consumers, reduce prepurchase risks. This role has received less attention in the literature. This review highlights marketing's role in reducing consumers? purchasing risk. We present our approach, backed up with extensive literature review, beginning with a description of advertising, branding, and pricing that may serve as a signal of a product's quality. We then describe and analyze the role of product demonstrations, free product samples, and money-back guarantees (MBGs), which enable consumers to acquire direct experience before a final decision is made, in reducing risks. We briefly discuss product warranties and their relationship to MBGs. We demonstrate how marketing tools can help reduce the risk associated with the consumption of food products that contain genetically modified organisms, as well as help in marketing of agricultural products that vary in their levels of risk to buyers.

Suggested Citation

  • Amir Heiman & Lutz Hildebrandt, 2018. "Marketing as a Risk Management Mechanism with Applications in Agriculture, Resources, and Food Management," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 253-277, October.
    • Handle: RePEc:anr:reseco:v:10:y:2018:p:253-277
    DOI: 10.1146/annurev-resource-100517-023047
    as

    Download full text from publisher

    File URL: https://doi.org/10.1146/annurev-resource-100517-023047
    Download Restriction: Full text downloads are only available to subscribers. Visit the abstract page for more information.
    File URL: https://libkey.io/10.1146/annurev-resource-100517-023047?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Amir Heiman & Joel Ferguson & David Zilberman, 2020. "Marketing and Technology Adoption and Diffusion," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 21-30, March.
    2. Dmitry A. Ruban & Natalia N. Yashalova, 2022. "Corporate Web Positioning as a Strategic Communication Tool in Agriculture," Agriculture, MDPI, vol. 12(8), pages 1-16, July.
    3. Rutsaert, Pieter & Donovan, Jason & Kimenju, Simon, 2021. "Demand-side challenges to increase sales of new maize hybrids in Kenya," Technology in Society, Elsevier, vol. 66(C).
    4. Rutsaert, Pieter & Donovan, Jason & Murphy, Mike & Hoffmann, Vivian, 2024. "Farmer decision making for hybrid maize seed purchases: Effects of brand loyalty, price discounts and product information," Agricultural Systems, Elsevier, vol. 218(C).
    5. Jason Donovan & Pieter Rutsaert & Ciro Domínguez & Meliza Peña, 2022. "Capacities of local maize seed enterprises in Mexico: Implications for seed systems development," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 509-529, April.

    More about this item

    Keywords

    marketing; risk-reduction; uncertainty; biotechnology; consumers; agricultural products;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative

    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:anr:reseco:v:10:y:2018:p:253-277. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: http://www.annualreviews.org (email available below). General contact details of provider: http://www.annualreviews.org .

    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.