IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/119854.html
   My bibliography  Save this paper

Measuring the impact of crises in the horticultural sector: The case of Spain

Author

Listed:
  • Pérez-Mesa, Juan Carlos
  • Sanchez-Fernández, Raquel
  • Serrano-Arcos, Mar

Abstract

Purpose: The following research has been conducted with the purpose of reviewing the literature on image crises in the food industry as well as providing a diachronic analysis to distinguish between the varying types of crises that played a critical role in the horticultural sector in recent decades, focusing on the particular case of Spain as the largest horticultural exporter in Europe. This research also analyses the economic impact of these crises upon demand. Design/methodology/approach: An empirical analysis has been conducted using inverse demand models to determine the prospective impact on demand of the image crises in the main European destination markets. Findings: The empirical analysis reveals an immediate impact upon demand (imports) in the short term. Sector crises invariably have one or many ‘explosion’ points when they reach the public sphere. These events reduce demand among European consumers, ultimately leading to a decrease in imported goods. The tested models revealed considerably significant losses that subsequently reduce annual exports by more than 3%. The analysis also reveals strong effects of complementarity and substitution among the various products that comprise the horticultural supply. Research limitations/implications: This study has not taken into account several movements that have also affected the horticultural sector, such as ‘anti-consumption’ and boycotts. Empirical results reveal a strong impact of image crises on demand (imports) in the short term. Consequently, there is an evident need to undertake actions, managed from the supply origin, that reach the consumer and effectively re-establish the prestige of the Spanish production system. Practical implications: This paper highlights the importance of the mass media in consumer attitudes and perceptions, and the need to create channels of direct communication to break the information asymmetry between production and consumption areas. Originality/value: This paper sheds new light on the literature of image crises. The findings of this research have contributed to greater knowledge of how image crises influence demand. From the point of view of management, these results can have practical implications for the highly competitive sector of horticultural production.

Suggested Citation

  • Pérez-Mesa, Juan Carlos & Sanchez-Fernández, Raquel & Serrano-Arcos, Mar, 2019. "Measuring the impact of crises in the horticultural sector: The case of Spain," MPRA Paper 119854, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:119854
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/119854/1/MPRA_paper_119854.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Efthymiou, Dimitrios & Antoniou, Constantinos, 2017. "Understanding the effects of economic crisis on public transport users’ satisfaction and demand," Transport Policy, Elsevier, vol. 53(C), pages 89-97.
    2. Headey, Derek, 2011. "Rethinking the global food crisis: The role of trade shocks," Food Policy, Elsevier, vol. 36(2), pages 136-146, April.
    3. Lynn J. Frewer & Susan Miles & Roy Marsh, 2002. "The Media and Genetically Modified Foods: Evidence in Support of Social Amplification of Risk," Risk Analysis, John Wiley & Sons, vol. 22(4), pages 701-711, August.
    4. Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 158-179, March.
    5. Wim Verbeke, 2005. "Agriculture and the food industry in the information age," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 347-368, September.
    6. Johan F. M. Swinnen & Jill McCluskey & Nathalie Francken, 2005. "Food safety, the media, and the information market," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 175-188, January.
    7. Emilio Galdeano, 2005. "An inverse demand analysis with introduction of quality effects: an application to Spanish consumption of fruit and vegetables," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 163-177, September.
    8. Song, Haiyan & Lin, Shanshan & Witt, Stephen F. & Zhang, Xinyan, 2011. "Impact of financial/economic crisis on demand for hotel rooms in Hong Kong," Tourism Management, Elsevier, vol. 32(1), pages 172-186.
    9. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
    10. Cees Beers & Gerben Panne, 2011. "Geography, knowledge spillovers and small firms’ exports: an empirical examination for The Netherlands," Small Business Economics, Springer, vol. 37(3), pages 325-339, October.
    11. Harald Van Heerde & Kristiaan Helsen & Marnik G. Dekimpe, 2007. "The Impact of a Product-Harm Crisis on Marketing Effectiveness," Marketing Science, INFORMS, vol. 26(2), pages 230-245, 03-04.
    12. Jay Shimshack, 2004. "Are Mercury Advisories Effective? Inofrmation, Education, and Fish Consumption," Discussion Papers Series, Department of Economics, Tufts University 0423, Department of Economics, Tufts University.
    13. Klaus G. Grunert, 2005. "Food quality and safety: consumer perception and demand," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 369-391, September.
    14. Vassilikopoulou, Aikaterini & Siomkos, George & Chatzipanagiotou, Kalliopi & Pantouvakis, Angelos, 2009. "Product-harm crisis management: Time heals all wounds?," Journal of Retailing and Consumer Services, Elsevier, vol. 16(3), pages 174-180.
    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. Pérez-Mesa, Juan Carlos & Pérez-Mesa, Fº Javier & Tapia-León, Juan José & Valera-Martínez, Diego, 2022. "Scheduling vegetable sales to supermarkets in Europe: The tomato case," MPRA Paper 119883, University Library of Munich, Germany.

    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. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.
    2. Pérez-Mesa, Juan Carlos & García Barranco, Mª Carmen & Serrano-Arcos, Mª Mar, 2023. "The agri-food crisis in the post-truth age: an application to the Spanish greenhouse sector," MPRA Paper 119882, University Library of Munich, Germany.
    3. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2019. "Heterogeneous Consumer Reactions to Health News," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 579-599.
    4. Juan Carlos Pérez-Mesa & Mª Carmen García Barranco & Mª Mar Serrano Arcos & Raquel Sánchez Fernández, 2023. "Agri-food crises and news framing of media: an application to the Spanish greenhouse sector," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    5. Chantal Toledo & Sofia Berto Villas-Boas, 2019. "Safe or Not? Consumer Responses to Recalls with Traceability," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 519-541, September.
    6. Tselepidakis, Elina, 2012. "Food Safety And The Demand For Meat Products," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124968, Agricultural and Applied Economics Association.
    7. Barbara Tiozzo & Anna Pinto & Federico Neresini & Stefano Sbalchiero & Nicoletta Parise & Mirko Ruzza & Licia Ravarotto, 2019. "Food risk communication: analysis of the media coverage of food risk on Italian online daily newspapers," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 2843-2866, November.
    8. Lin, Wen & Ma, Baojie & Liang, Jiangyuan & Jin, Shaosheng, 2024. "Price response to government disclosure of food safety information in developing markets," Food Policy, Elsevier, vol. 123(C).
    9. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    10. Marette Stéphan & Roosen Jutta & Blanchemanche Sandrine, 2011. "The Combination of Lab and Field Experiments for Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 1-36, August.
    11. Mykel R. Taylor, 2009. "Does Food Safety Information Affect Consumers' Decision to Purchase Mean and Poultry? Evidence from U.S. Household Level Data," Working Papers 2009-11, School of Economic Sciences, Washington State University.
    12. Renee B. Kim, 2012. "Consumers' perceptions of food risk management quality: Chinese and Korean evaluations," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(1), pages 10-20.
    13. Adam Dvir, 2022. "Is mass media an effective channel for conveying nutritional information? Welfare implications of the WHO classification of processed meats as carcinogenic on consumers in Israel," French Stata Users' Group Meetings 2022 21, Stata Users Group.
    14. Hattori, Keisuke & Higashida, Keisaku, 2014. "Misleading advertising and minimum quality standards," Information Economics and Policy, Elsevier, vol. 28(C), pages 1-14.
    15. Hallstein, Eric & Villas-Boas, Sofia Berto, 2009. "Are Consumers Color Blind?: an empirical investigation of a traffic light advisory for sustainable seafood," CUDARE Working Papers 120535, University of California, Berkeley, Department of Agricultural and Resource Economics.
    16. Seth Freedman & Melissa Kearney & Mara Lederman, 2012. "Product Recalls, Imperfect Information, and Spillover Effects: Lessons from the Consumer Response to the 2007 Toy Recalls," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 499-516, May.
    17. Mariano J. Rabassa & Mariana Conte Grand & Christian M. García-Witulski, 2021. "Heat warnings and avoidance behavior: evidence from a bike-sharing system," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 1-28, January.
    18. Bojian Chen & Shiyuan Dong, 2022. "Mercury Contamination in Fish and Its Effects on the Health of Pregnant Women and Their Fetuses, and Guidance for Fish Consumption—A Narrative Review," IJERPH, MDPI, vol. 19(23), pages 1-16, November.
    19. Fabio Boncinelli & Francesca Gerini & Benedetta Neri & Leonardo Casini, 2018. "Consumer willingness to pay for non‐mandatory indication of the fish catch zone," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 728-741, October.
    20. Janet Currie & Joshua Graff Zivin & Katherine Meckel & Matthew Neidell & Wolfram Schlenker, 2013. "Something in the water: contaminated drinking water and infant health," Canadian Journal of Economics, Canadian Economics Association, vol. 46(3), pages 791-810, August.

    More about this item

    Keywords

    Image; crisis; demand; exportation; horticultural; Spain.;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    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:pra:mprapa:119854. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.