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Food SMEs Face Increasing Competition in the EU Market: Marketing Management Capability Is a Tool for Becoming a Price Maker

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  • Alessandro Banterle
  • Alessia Cavaliere
  • Laura Carraresi
  • Stefanella Stranieri

Abstract

ABSTRACT The price‐making ability of food small and medium‐sized enterprises (SME) is important for their market survival. Since pricing is a part of marketing activities, by developing specific marketing capabilities, firms can improve their ability to make pricing decisions. This paper aims at evaluating the relationship between marketing capabilities and a firm's price‐making ability. A survey was conducted based on a sample of 371 food SMEs in the EU. We applied an Ordinal Regression Model to evaluate the determinants of a firm's price‐making ability. The analysis results revealed a certain ability of SMEs to set prices. Market analysis and marketing strategy planning capabilities are positively related to the price‐making ability of a firm, while firm size is not. Supply chain relationships play a crucial role in price‐making due to the strong constraint presented by the presence of vertical competition between food SMEs and supermarkets. (L25, L66, M31)

Suggested Citation

  • Alessandro Banterle & Alessia Cavaliere & Laura Carraresi & Stefanella Stranieri, 2014. "Food SMEs Face Increasing Competition in the EU Market: Marketing Management Capability Is a Tool for Becoming a Price Maker," Agribusiness, John Wiley & Sons, Ltd., vol. 30(2), pages 113-131, March.
    • Handle: RePEc:wly:agribz:v:30:y:2014:i:2:p:113-131
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    File URL: http://hdl.handle.net/10.1002/agr.21354
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    Cited by:

    1. Man Mohan Siddh & Sameer Kumar & Gunjan Soni & Vipul Jain & Charu Chandra & Rakesh Jain & Milind Kumar Sharma & Yigit Kazancoglu, 2022. "Impact of agri-fresh food supply chain quality practices on organizational sustainability," Operations Management Research, Springer, vol. 15(1), pages 146-165, June.
    2. Michał Gazdecki & Grzegorz Leszczyński & Marek Zieliński, 2021. "Food Sector as an Interactive Business World: A Framework for Research on Innovations," Energies, MDPI, vol. 14(11), pages 1-19, June.
    3. Alessandro Banterle & Daniela Vandone, 2019. "Price volatility and risk management: The case of rice in the EU," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(2), pages 255-274.
    4. Laura Carraresi & Xhevrie Mamaqi & Luis Miguel Albisu & Alessandro Banterle, 2016. "Can Strategic Capabilities Affect Performance? Application of RBV to Small Food Businesses," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 416-436, July.
    5. Hirsch, Stefan & Mishra, Ashok K. & Finger, Robert, 2017. "Firm Flexibility in the EU Dairy Processing Industry," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258467, Agricultural and Applied Economics Association.
    6. Eugenio DEMARTINI & Anna GAVIGLIO & Alberto PIRANI, 2017. "Farmers' motivation and perceived effects of participating in short food supply chains: evidence from a North Italian survey," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(5), pages 204-216.
    7. Teresa Madureira & Fernando Nunes & Fernando Mata & Manuela Vaz-Velho, 2024. "A SWOT Analysis of Organizations in the Agri-Food Chain Sector from the Northern Region of Portugal Using the PESTEL and MEETHS Frameworks," Agriculture, MDPI, vol. 14(9), pages 1-19, September.

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