Retail Value Research Articles

Pricing decisions in a dual supply chain of organic and conventional agricultural products

We analyze a dual-channel supply chain comprising two suppliers that offer vertically-differentiated agricultural products; specifically, one offers an organic version of an agricultural product and the other offers a conventionally-grown version of the same product. Each supplier distributes his product through two channels: directly to consumers and via a single retailer who sells both product versions. Consumers are assumed to be heterogeneous in their valuations of the benefits associated with organic products and of the benefits of purchasing from a retailer (reflected, e.g., in extra services). We also assume that the agricultural products can depreciate in value (e.g., due to deterioration and spoilage). We study market competition in the case where all supply chain members (the two suppliers and the retailer) determine their prices simultaneously in order to maximize their respective profits. First, we analytically solve the cases where organic and conventional value depreciations are equal in each channel or where the direct and the retailer value depreciations are equal for each product. Under these assumptions, we show that each supplier sets a wholesale price that is equal to the direct price. Moreover, the price margins set by the retailer for both the organic and conventional versions are identical. The more general case is analyzed numerically; this analysis reveals the relationships between the model parameters, the equilibrium pricing and the profits of the supply chain members. We identify the conditions under which the wholesale prices of each product version are higher than the direct prices.

The effect of threshold free shipping policies on online shoppers' willingness to pay for shipping

More and more online retailers now offer free delivery for orders exceeding a minimum purchase quantity—in effect, a threshold free shipping (TFS) policy. While TFS has become so prevalent in e-tailing, there is still not much known about the factors that may influence the consumers’ intentions to pay for delivery when they purchase less than the specified quantity. Based on the dual entitlement principle, we develop a conceptual model to examine the possible influence on consumer perceptions of the characteristics of the TFS policy (i.e., threshold level, shipping charge, and delivery timing) and how this may influence their inferred retailer's motive and value perceptions, which in turn impacts their perceptions of the fairness of the policy and willingness to pay for shipping when the threshold for free shipping is out of reach. A total of 367 online responses were collected. The results reveal that consumers’ inferred motive for the retailer's TFS policy is positively influenced by their perceptions of the threshold and shipping fees as a profit generator, but negatively influenced by the delivery timeliness. As hypothesized, both perceived threshold and delivery timeliness contribute to the consumers’ value perceptions. In addition, perceived policy fairness is affected by the perceptions of shipping fees as a profit generator and perceived value. Finally, the consumer's willingness to pay for shipping is mainly affected by the inferred motive rather than the perceived value and policy fairness perceptions.

Data-driven manufacturer-retailer collaboration under competition

ABSTRACTThis research employs game theoretic models to investigate how and when data-driven collaborations between manufacturers and retailers are beneficial. In the models, two symmetric retailers each offer two products from two different manufacturers. Each manufacturer may choose to collaborate with one or both retailers through data-driven initiatives in providing retail value to the consumers. The results show that the main incentive behind these collaborations arise from the efficient allocation of resources. Surprisingly, greater brand differentiation reduces profit margins and the incentive to collaborate. We also find that market leaders can endogenously arise through data-driven collaborations.

Value Chain Management Model for Retailing of Marine Fish

The value chain concept addresses various problems being faced by the fisheries sector and its stakeholders. Value chain management enables the policy makers to analyze and assess the marine fisheries sector in a better way and can make the sector more promising and contribute to the development of the economy. The main aim of this study was to analyze various value added operations performed upon the marine fish at the retail point and to examine whether there was any impact of value added operations on the final retail price of marine fish. The primary data of marine fishery retail value chain was collected from the marine fish retailers existing in coastal Andhra Pradesh, India. Finally, it was concluded that there was a difference in price of the marine fish after performing value chain by the retailer. This paper also proposed a retail value chain model for marine fish.

Sustainable development concept and creation of innovative business models by retail chains

PurposeThe purpose of this paper is to recognise the areas of implementation of the principles of sustainable development (SD) in the model of retail chains activity. In the paper, the assumption was made that nowadays it is necessary to adopt the rules following SD while making strategic decisions by retail chains.Design/methodology/approachThe study uses secondary data sources, reports, academic literature and the case study research method. A case study research is a multi-method paradigm based on full range of a scientist’s tool-kit: reviewing literature studies, examining secondary documents and comparing the websites of investigated retail chains.FindingsAccording to that business model, the authors were recognising selected components of this model, that is to say: recourses and competences of retail chains and value proposition for their customers. The greatest chances of development will be enjoyed by those retail chains that will be able to provide real value to customers. Maintaining a competitive advantage will require constant improvements in the quality of service and innovative business models connected with sustainable elements.Research limitations/implicationsIt seems necessary to develop research tools that allow for identification of the level of use of the SD concept in retail chain’s business models in the future.Practical implicationsThe paper is of interest to practitioners and students of retail management.Social implicationsThe concept of the SD model included in the retailer business models serves to build value for the customer through the care of his quality of life. The vast majority of retailers believe that it is the responsibility of the business sector to respond to social and environmental challenges.Originality/valueThe paper intends to fill the gap in the literature concerning the influence of SD concept on changes in the business models of retail chains. The SD activities can lead to the development of specific capabilities based on intangible recourses that are sources of competitive advantage (SD). That is the main reason of undertaking this subject.

Limited implementation of the framework convention on tobacco control’s tobacco tax provision: global comparison

ObjectiveTo quantify changes in tobacco tax rates and cigarette affordability after countries ratified the WHO Framework Convention on Tobacco Control (FCTC) using with the WHO MPOWER standards.MethodsWe used logistic regression...

Product variety, across‐market demand heterogeneity, and the value of online retail

AbstractOnline retail gives consumers access to an astonishing variety of products. However, the additional value created by this variety depends on the extent to which local retailers already satisfy local demand. To quantify the gains and account for local demand, we use detailed data from an online retailer and propose methodology to address a common issue in such data—sparsity of local sales due to sampling and a significant number of local zeros. Our estimates indicate products face substantial demand heterogeneity across markets; as a result, we find gains from online variety that are 45% lower than previous studies.

Factors Affecting Consumers’ Purchase Behaviour for Health and Wellness Food Products in an Emerging Market

This article aims at identifying the factors affecting the buying behaviour of the consumers for health and wellness food products in India, based on a structured primary survey of 218 respondents in the city of Lucknow, India, using the stratified random sampling technique. The survey data has been analysed using appropriate statistical tools such as descriptive statistics, factor analysis and regression analysis. The retail value of health and wellness foods in India has shown a significant annual growth of 14.3 per cent during the last decade. Consumers’ preference for health and wellness food product attributes indicate that quality and health benefits are perceived as very important and extremely important by more than 75 per cent of the respondents. Better-for-you (BFY) food products comprise the major share of 32 per cent of the health and wellness food basket of the consumer. Regression results clearly indicate that socio-demographic profile of the consumers, product attributes, market attributes and psychological factors are more likely to influence the consumers’ health and wellness food purchase decision. This study provides practical insights for the companies involved in producing and marketing health and wellness food products in terms of the increasing consumer demand for healthier food choices.

Filling the out of season gaps for lamb and hogget production: Diet and genetic influence on carcass yield, carcass composition and retail value of meat

This study investigated the use of camelina forage and meal supplementation to a finishing diet on carcass traits, composition and retail value of lamb and hoggets. The metabolisable energy and crude protein concentrations of all 3 diets were 10–11 MJ/kg DM and 14–15% CP. Thirty maternal Composite wether lambs (28–38 kg) and 30 Merino wether hoggets (37–43 kg) were used in a 3 × 2 factorial experiment. Animals were slaughtered after 10 weeks of feeding with carcasses classified as ‘Heavy lamb’ or ‘Heavy hogget’ (>22 kg carcass weight). Carcass traits, composition, meat mineral concentrations and retail colour were measured. Camelina diets increased liveweight (P < 0.02) and carcass weight (P < 0.002) for both sheep types. Carcass weight (P < 0.005) and dressing % (P < 0.01) were lower for Merino hoggets than Composite lambs. Mineral concentration and retail colour stability of fresh meat were unaffected by diet, with 72 h retail colour considered acceptable for consumers.

Linking life-history traits, spatial distribution and abundance of two species of lugworms to bait collection: A case study for sustainable management plan

Arenicola spp. are marine benthic polychaetes dug for bait by anglers. Without regulation, this activity can lead to the decrease of lugworms' population meanwhile affecting the physical characteristics of the beach and the biodiversity. Here, we identified through morphology and genetics two species of lugworms, Arenicola marina and A. defodiens, within a Marine Protected Area of the Eastern English Channel (France). For each species, abundance and spatial distribution were assessed using a stratified random sampling and interpolation at four studied sites, as well as some life-history traits. These data were compared to lugworms' collection data to estimate its sustainability and to provide potential management measures. At one site, A. marina was present in large numbers on the higher and middle shore, whereas A. defodiens occupied the lower shore. At the other sites, both species co-occurred on the lower shore, and A. marina individuals were less numerous and lacking recruits. Spawning periods for A. marina occurred in early autumn and in late autumn for A. defodiens. The size at first maturity of A. marina was at 3.8 cm of trunk length (between 1.5 and 2.5 years old). One site (Au) appeared in need for management when linking abundance data with bait collection, where harvest of both species represented ∼14% of the total amount of lugworms and was above the carrying capacity of the beach for A. marina. The retail value associated to lugworm harvesting within the MPA was estimated at the same level as the shrimp retail value. Our results highlight the need for some fishery regulations.

Wildlife trade, captive breeding and the imminent extinction of a songbird

The illegal cage bird trade is increasingly recognised as a major impediment to the survival of a large number of songbirds. Indeed some bird species are now more common in captive private hands than they are in the wild. This includes the black-winged mynas (Acridotheres melanopterus, A. tricolor and A. tertius), three species of Critically Endangered songbirds endemic to Indonesia. Only 20 years ago these species were not considered globally threatened but high levels of trapping from the wild for the largely domestic cage bird trade has brought all three species to the brink of extinction. It is estimated that less than 500 black-winged mynas remain in the wild. Here we investigate the trade in black-winged mynas, online and in bird markets, and make an assessment of the role captive breeding played in the conservation and management of the species over the period 2009–2018. We found prices peaked in 2014 at ∼ US$140 (∼75% of the monthly minimum wage) per bird and have subsequently gone down to US$85 (now ∼33% of the minimum wage), possibly indicating higher supply and lower demand. In 2015–2018 we surveyed seven bird markets in western Java and in 127/145 visits observed 1253 black-winged mynas for sale. Turnover was high, with ∼50% of birds sold after one week upon arrival in the market. We estimate that between 1300 and 2300 mynas (retail value ∼ US$170,000) are sold annually in these seven bird markets. Few birds had closed leg-rings, but were in all likelihood a combination of captive-bred, first-generation captive-born and wild-caught individuals; some appeared to be crossbreeds between the three recognised species. With additional bird markets in Java and Bali and a thriving online trade, we estimate that the number of black-winged mynas in private ownership in Indonesia is in the order of 40,000 birds. Without proper registration and regulation in the trade of captive-bred mynas, even a small amount of wild-caught birds entering this now substantial trade will act as a serious impediment to the conservation of black-winged mynas. With the species already being ecologically extinct, we anticipate that it soon will join the ranks of species like Père David's deer Elaphurus davidianus and scimitar-horned oryx Oryx dammah that are extinct in the wild but that have captive populations in the tens of thousands. In order to prevent the imminent extinction of black-winged mynas in the wild, we recommend (1) that the Indonesian authorities invest in more effective law enforcement and prosecution of lawbreakers; (2) establishing a multi-stakeholder three species black-winged myna management plan, in which commercial captive breeders participate; and (3) better coordination of reintroduction programmes.

How Does Web Personalization Create Value for Online Retailers? Lower Cash Flow Volatility or Enhanced Cash Flows

This study examines the performance consequences of web personalization (WP), a type of personalization in which web content is personalized and recommendations are offered based on customer preferences. Despite the growing popularity of personalization, there is a dearth of research at the firm level on whether and how web personalization creates shareholder value. We develop and test a conceptual model that proposes that the impact of WP on shareholder value is mediated by (1) cash flow volatility and (2) premium price. The hypotheses are tested based on 603 firm-quarter observations spanning 80 firms over six years in the online financial services industry. The results suggest that while WP lowers the volatility of cash flows, it only enables firms to charge premium prices when online trust is high. Additional tests reveal that the reduction in cash flow volatility is because of lower churn as opposed to acquiring new customers or greater cross-buying. Finally, online trust positively moderates the relationships between WP and cash flow volatility and price premia. Practical implications of the findings are discussed.

Electric field applications on dried key lime juice quality with regression modeling

Key lime (Citrus aurantifolia L.) is an important source of juice and vitamins. A continuous nonthermal juice pasteurizer (CNTJP) using electric field with alternating current was designed and constructed. The effect of electric field was investigated on dried (black) lime juice using voltage gradients (X1) of 24–88 V/cm and mass flow rates (X2) of 12–50 kg/hr. The treated juice was evaluated for physicochemical properties, phytochemical compounds with antioxidant capacity, and microbial quality. The results showed that there were no significant effects (p > .05) between CNTJP treatment and both the thermal treatment and the control sample regarding the total soluble solids and pH values. However, the titration acidity value of dried juices in thermal treatment was significantly higher (p < .05) compared to the control and CNTJP samples. There was a significant difference (p < .05) between CNTJP samples and both the control and the thermal treatment samples regarding the total phenolic content, ascorbic acid content, and antioxidant activity (1,1-diphenyl 2-picrylhydrazyl). Also, the results showed that coliform bacteria, yeast, and mold were not capable of growing in control samples (fresh juice) or all samples treated by CNTJP treatments or thermal treatments. However, the total viable count of CNTJP samples varied between 1.93 and 4.79 (Log10 CFU/mL), whereas the total viable counts of the control sample and thermal treatment were 5.99 and 3.82 (Log10 CFU/mL), respectively. At the optimum conditions of mass flow rate of 28.24 kg/hr and voltage gradient of 82.38 V/cm, the highest electrical conductivity was 0.65 S/m. Practical applications Nonthermal, high-throughput pasteurization systems are highly desirable as alternatives to overcome the negative effects of thermal pasteurization. Electric field (EF) is one potential alternative technology. Although this study did not focus on effectiveness of log reduction of pathogens, EF resulted in fewer pathogenic indicators than nontreated dried lime juice. Electric field did demonstration superiority over thermal pasteurization for maintaining total phenolic content, ascorbic acid, and antioxidant activity in dried lime juice. Maximizing healthy characteristics of fruit juice during pasteurization can lead to a product with a higher retail value than traditional thermal processing. This potential higher economic value for EF-treated juice could offset implementation and processing costs. The EF system described in this study can be readily scaled up by having parallel lines of size similar to this study or by increasing the tubing and electrode sizes or both.

See you in Denver!

May is a wonderful month, spring is in the air and we celebrate Mother’s Day. May is also the month before the AANP National Conference. I can almost feel the mountain air and see the breathtaking beauty of the Rocky Mountains. The Denver area has a lot to offer for everyone from the outdoor adventurer to the lover of culture. I personally like the Molly Brown House, the US Mint, the gold mines and the nearby Coors Brewery. I also enjoy the sights on the scenic Mount Evans Byway. If you do not have time to take in some sights, the national conference is a good way to have your own adventure. You will have opportunities to earn CE, network with colleagues, mingle with AANP leadership and become involved in your national organization. Some exciting activities are planned for this year's conference including a live concert performance by Musicians on Call, and a chance to help families with newborns by donating to Newborns in Need. At this year’s conference there will some exciting activities which include a live performance from Musicians on Call, and a chance to help mothers and newborns by donating to Newborns in Need. A program of Denver Health Foundation, Newborns in Need exists to provide every baby that is delivered at Denver Health Hospital a good start on life through the donation of a Warm Welcome bag that contain diapers, a sleep sack, bibs, socks, hats, pajamas, blankets, baby lotion, baby shampoo, a stuffed animal and a book. The program also provides portable cribs, strollers and car seats for parents who are unable to afford them and is sustained entirely through private donors. In 2017, they distributed nearly 3,400 Warm Welcome bags, each with a retail value of approximately $120. AANP will give our attendees the opportunity to help this initiative through monetary donations as well as items for the welcome bag. Stay tuned for more information. Make your plans now to be at AANP’s 2018 National Conference. It is one you won’t want to miss. I look forward to seeing you in Denver!

English

Fasciolosis is a parasitic disease caused by either Fasciola hepatica or Faciola gigantica. These parasitic infections are of global significance causing diseases in different mammalian species including humans. In this study, the prevalence and economic significance of Fasciolosis in cattle slaughtered at Gondar Elfora abattoirs was assessed. A total of 400 cattle were examined and 85 cattle (21.2%) were affected by fasciolosis. This findings indicated that, the prevalence of cattle fasiolosis is significantly affected by the age of the animals (P &lt; 0.05), where young animals (27.7%) were more affected than the adult ones (17.1%). Body conditions disclosed a significant relation with Fasciola infection. Poor body conditioned animals showed the highest prevalence (30.8%) followed by medium (19.5%) and good body conditioned animals (17%). There were statistical significant differences between the different geographical locations. Highest prevalence of fasciolosis was exhibited in animals originated from Dembiya (50%) followed by Debarq (31.6%), Wogera (15%), Gondar zuria (13.5%), Belesa (12.9%), Dansha (11.9%) and Metema (4.7%). As recorded, due to cattle fasciolosis livers were condemned for human consumption. Thus, based on retail value of cattle liver, the direct economic loss from fasciolosis in Gondar Elfora abattoir was estimated to be 63,600 Ethiopian Birr (2316.948 USD) annually. In conclusion, cattle fasciolosis is one of the major parasitic diseases in the study area. Therefore appropriate control measures should be designed and implemented so as to reduce financial losses that may occur from organ condemnation and loss of animals from the disease. Key words: Cattle, economy, Elfora abattoir, fasciolosis, prevalence.

Value adding in the agri-food value chain

Global agricultural markets reflect the increasing complexity of modern consumer demand for food safety and quality. This demand has triggered changes throughout the food industry, and led to greater opportunities for product differentiation and the potential to add value to raw commodities. Greater differentiation and value adding over time has in turn dramatically changed the price spread or marketing bill between the farm value of products and the retail value. Thus a significantly greater percentage of the final price paid by consumers is now garnered down chain rather than up chain over the last 20 years. This apparent shifting of value creation or addition, as measured by the marketing margin, has invigorated empirical questions as to where, and how much value, is created along the agri-food value chain. First we define value creation/adding, and then we estimate the economic value added for 454 firms. We validate our findings by creating and employing three additional value creation measures – the modified economic value added, the creation or destruction of value, and the persistence of value creation. Finally we estimate value creation at each node of the value chain, measure the relative differences among firms and nodes, and estimate a model measuring the drivers of value adding.

Marketing energy efficiency: perceived benefits and barriers to home energy efficiency

Energy efficiency contributes significantly to the reduction of greenhouse gas emissions and the associated mitigation of climate change. The uptake of energy efficiency measures in the residential sector requires significant effort on the part of homeowners or residents. Past research has revealed that cost savings and social interaction motivate energy efficiency behavior. This study expands on this research by examining the hypothesis that there are regional differences in what motivates individuals to implement home energy efficiency upgrades. Two surveys (N = 320 and N = 423) examine the perceived benefits of and barriers to undertaking home energy efficiency improvements in varying geographic regions across the USA and test marketing materials that target these benefits and barriers. The hypothesis that there are regional differences in perceptions of energy efficiency was confirmed. Cost savings were found to be the most important benefit to individuals across the country. Energy efficiency being a good investment is either the second or third most important benefit across all regions. Increased comfort is the last of the top three most important benefits to those in the South and Midwest, while those in the Northeast demonstrated interest in the increase in home retail value associated with energy efficiency, and those in the West found the environmental benefits to be important. High costs of energy efficiency improvements were found to be the most commonly perceived barrier. Reported likelihood to enroll in a home energy efficiency program offered by one’s employer was predicted by perceived likelihood that coworkers would enroll, income level, and personal opinions about the importance of energy efficiency.

Product Variety, Across-Market Demand Heterogeneity, and the Value of Online Retail

Product Variety, Across-Market Demand Heterogeneity, and the Value of Online Retail

Overheads of truck transport in Australia: implications for biomass as feedstock for bio-energy

ABSTRACTTransport of feedstock for transformation to usable fuel, and/or utilized, are overheads in the use of biomass for bio-energy. The inclusive costs for truck transport were evaluated for different truck types. Using small trucks, operational costs (1.1 Aus$/t/km) are an overwhelming liability in terms of the value of carbon and/or energy delivered, unless transport distances are a few kilometres. When larger trucks are used, transport costs (0.15 Aus$/t/km) represent a significant impost on the actual value of the commodity (carbon or energy) and the degree to which it is competitive with other sources of energy (e.g. existing electricity, gas or petroleum) or with the likely values placed on carbon. For example, transport costs are equivalent to the retail value of electricity when a large truck has travelled about 600 km. These results are also relevant to how transportation distances influence the economics of value chains for various commodities.

Environmental impact and potential use of coal fly ash and sub-economical quarry fine aggregates in concrete

The Israeli quarry industry produces 57 Mt of raw material and ∼4–6Mt of associated sub-economical by-products annually. These sub-economical quarry fines are not used because production and transportation costs considerably exceed their retail value. Therefore these by-products, are stored in large piles of fine grain size particles, create environmental risks to their surrondings.This paper evaluates the possibility of mixing the sub-economical quarry by-products of two Israeli quarries with sub-economical Class F coal fly ash (<20wt.% CaO) to form an economical aggregate sand substitute to be used as a concrete filler product.To study the feasibility of the aggregate as partial substitute to sand in concrete several analyses, including leaching experiements (EN12457-2), analytical techinques (SEM-EDX, ICP-MS, ICP-AES, and XRD), as well as an analysis of the mechanical and chemical properties of the concrete aggregate (strength, workability, and penetration) were performed. Scrubbing quarry waste with coal fly ash was found to be very effective for reducing the leaching rate of potentially harmful trace elements. In addition, adding fly ash with quarry fines as partial substitute to sand enhanced the performance of the concrete mixture and the properties of the fresh and harden concrete.