Rural Retail Research Articles

Evaluation of Farm Fresh Food Boxes: A Hybrid Alternative Food Network Market Innovation

Using a mixed-methods design, we evaluated Farm Fresh Food Box (F3B) a market innovation designed to expand producer markets, stabilize rural retail businesses, and improve rural food access. In the F3B model, pre-ordered Community Supported Agriculture (CSA)-style produce boxes are sold through rural retail outlets. F3B was implemented from 2016 to 2018 as part of a United States Department of Agriculture (USDA)-funded multi-state extension and research collaboration project in 3 geographically diverse and rural areas: Vermont, Washington, and California. The F3B evaluation aimed to (1) assess market potential; (2) determine logistics for successful implementation; (3) describe the benefits and drawbacks for farmers and retailers; and (4) measure consumers’ attitudes and purchase behavior. A national market survey indicated consumers would be likely to purchase F3B if it was perceived to offer good value on fresh local produce, without need for a subscription. The model put a few additional labor burdens on farmers and retailers, but required time for relationship-building and more record-keeping time for farmers. Those who purchased a F3B were generally satisfied with the quality, quantity and variety of produce each week and a high proportion considered F3B to be a good value for the money. As a new business innovation, F3B showed only modest profit, but retailers and farmers felt it was worthwhile to expand their customer base, promote their brand and develop their partnership. F3B began a means to address flattened growth in direct to consumer produce sales, food deserts and dwindling retail options for fresh foods in rural areas. We discuss F3B as a potential solution to food system weaknesses exposed by the COIVD-19 pandemic because it offers touch-free, high-quality local produce ready for curbside pickup at a convenient location.

Farm Fresh Food Boxes: Relationships in Value Chain Partnerships

The Farm Fresh Food Box (F3B) project is a mar­ket innovation that aims to capitalize on successful characteristics of direct-to-consumer (DTC), values-based supply chains (VBSCs), and tradi­tional supply chains with the goals of expand­ing producer sales and improving rural food access. In the F3B model, farmers sell boxes of fresh pro­duce in rural retail outlets to bring food to custo­mers with limited access to locally grown foods. We present pilot findings on indicators of relation­ship quality, communication of embedded value, and food environment, and compare these with extant research to assess whether F3B behaves like a DTC, VBSC, a traditional supply chain, or some­thing else entirely. Unlike much of the previous value-chain research, this work places a unique emphasis on the importance of the farmer-retailer relationship. We merge existing knowledge of DTC strategies and barriers with those of VBSCs and traditional supply chains to understand better the process of expanding into new outlets and con­sumer populations. We find that while the F3B model reduces some resource constraints, it adds a layer of complexity that requires time and expertise to develop a quality relationship between producers and retailers. Additionally, it is apparent that the F3B model must be tailored to fit local contexts of farmers and retailers participating in F3B market innovations.

Distributionsrevolution des 15. Jahrhunderts

The Distribution Revolution of the Fifteenth CenturyThe consumption revolution of the long eighteenth Century (c. 1650-1850) was inconceivable without a prior distribution revolution in Northwest Europe, in the course of which markets were linked in a stable hierarchy reaching from the international fairs of Antwerp and Frankfurt down to humble packmen tramping from village to village. The exotic products of the consumption revolution did not have to surmount any significant distribution problems, because the networks had been functioning since the fifteenth Century. The proof of this hypothesis is divided into two parts, one empirical and the other theoretical. The foundation of some 2000 weekly markets in England between 1200 and 1350 resulted from the interaction of peasants’ cash requirements and improved transportation by horse: There was much money to be made by establishing markets, but peasants could choose between them. This set in train a brutal winnowing of markets which was intensified in the late middle ages by the effects of the plague, the enclosure movement and price-wage developments. In the end, the surviving markets had organized themselves into a hierarchy based on London, which was, by 1500, indisputably the center of foreign trade and the distribution of imports in England. This section concludes by showing that the hierarchization of markets was also characteristic of the Hanseatic area during the same period. The theoretical part of the paper demonstrates that the hierarchization of markets changed the framework for economic actors in a way no person or group could alter. Late medieval industrial mass production, succeeded by early modern proto-industrialization, required efficient labor markets and distribution networks. Placing the price signals generated by urban markets at the center of the argument solves a number of troubling problems of proto-industrialization: the geographical concentration of proto-industries, the outsourcing of simple tasks (and the retention of more sophisticated processes) and thesubsequent urbanization of rural industrial clusters. It also allows us to go beyond Diamond and Krugman and construct a real-world model of the rise of market hierarchization, as traders exploited scale economies derived from the difference between urban Wholesale and rural retail prices, and - by concentrating their trade on the most liquid provincial markets (thus maximizing thick market externalties) - locked these satellite markets into the hierarchy. An examination o f the policies o f the London Grocers and Mercers proves that this did, indeed, take place in the course of the fifteenth Century. Therefore, the distribution revolution was a true revolution, one which changed forever the framework for economic actors in a way 110 person or group could alter (,economic Constitution‘).

Growth of Rural Retailing in India with Reference to Kolhapur District

The aim of the study is to identify the growth of rural retailing in India with reference to Kolhapur district. A decade ago, the rural market was more unstructured and was not a prioritized target location for corporate. There were no innovative approach and advertisement campaigns. A distribution system did exist, but was feeble. Illiteracy and lack of technology were the other factors leading to the poor reach of merchandise and lower level of awareness amongst villagers. Gradually, corporate realized that there was saturation, stiff competition and clutter in the urban market, and a demand was building up in rural areas. Seeing the vast potential of 70% of Indians living in rural areas, they started focusing on these unexplored, high-potential areas. In India totally there are 5, 70,000 villages and nearly 60 percent of the rural income comes from agriculture. As a result, retail outlets have sprung up in practically all the villages that store merchandises of various brands and categories. To attract the customers, rural retailing requires separate retailing approach for the retailing mix elements include, Merchandise, Cost, Location and Advertisements which could be formulated after studying the market carefully. Merchandise itself might require modifications due to different nature of population, pricing have to be carefully designed since rural consumers unlike their urban counterparts spend less on consumer merchandise, location have to be decided for easy accessibility and promoting the merchandise to encourage the sales. Retailing Strategy is affected by various factors like Type of merchandise (Durable or non-durable), profile of target market, and facilities available for using retailing mix etc. Keywords: Retailing approach, Rural Retailers, Merchandise, Cost, Location, and Advertisement. DOI: 10.7176/EJBM/12-13-05 Publication date: May 31 st 2020

Impact of Perceived Value on Customer Loyalty

Customers are considered to be the most important aspect of the business. Survival of the business in terms of the profitability and sustainability depends upon its customers. For the Long and profitable survival of the business it is important to create the value for the customer and to cater their needs. It is very important for the company to attract the potential customers and retain the existing ones because it is the customers who create the demand of the products or services in the market. It is very important for any business to create the value for its customers to increase their satisfaction level with respect to product and organization. Satisfied customers have a higher probability of repeat purchases and long term relationship with the business which ultimately creates the customer loyalty. In the current Competitive business scenario customer loyalty is considered one of the important intangible assets of the business for the formulation of any business strategy. In such environment loyal customers can provide a competitive advantage for any business for the long survival. The aim of this study is to find the relationship between Customer Perceived Value, communication and customer loyalty in rural retailing.

PRICE INTEGRATION AND TRANSMISSION OF FOOD GRAINS MARKETS IN SOUTHWEST NIGERIA (2004-2013)

The success of market reforms in developing countries depends to a large extent on the strength of price signals transmitted between different level of markets reflecting extent of market integration and extent to which markets function efficiently. Market integration is an indicator that efficiency exists within the flow of information between markets. This study examined price integration and transmission of food grains markets in Southwest, Nigeria. Time series data of rural and urban retail prices of local and imported rice, cowpea and maize between 2004 to 2013 were obtained from the Agricultural Development Programme (ADP) Offices in selected States. The degree of price transmission was analyzed within the framework of Vector Error Correction Model (VECM). The Augmented Dickey Fuller (ADF) unit root test results revealed that the price series were stationary at first difference. Johansen cointegration results showed that even though two Cointegrating Equations (CEs) exist between linear combinations, some stable long run equilibrium relationships exist among the price series. The study concluded that Rural Price of Local Rice in Lagos State (RPLRLS), Rural Price of Cowpea in Oyo State (RPCOYS) and Rural Price of Maize in Lagos State (RPMLS) occupied the leadership position in price formation and transmission. The study therefore, recommended that policy measures aimed at increasing consumption of local rice, cowpea and maize be implemented, in identifying the leader markets.
 

Store patterns of availability and price of food and beverage products across a rural region of Newfoundland and Labrador.

Rural populations bear a disproportionate burden of diet-related risk, and one important explanation is retail food access disparities. Much existing literature has focused on subjective measures of the rural retail food environment, as well as urban-rural differences. The purpose of this paper is to examine how objectively measured food availability and prices vary within a rural region, and to explore how store features predict rural food availability and prices. We conducted an observational audit of a census of rural food stores (n = 78) using a modified Nutrition Environment Measures Survey instrument. The study was conducted on the Avalon Peninsula in Newfoundland and Labrador. Observed prices in-store were matched to nutrient composition data and converted to three units of measure for all analyses: unit price ($/kg), serving price ($/serving), and energy price ($/kcal). We examined average availability and prices across the region, and how store features were associated with prices. Healthy food options were generally less available across the stores than regular items. However, with few exceptions, there were no clear or consistent patterns of difference in availability or pricing between stores of different types. No single product category stood out in terms of a clear price pattern. Store characteristics (including store type, size, ownership, or rurality) did not predict food prices. Food availability and prices varied in this rural region, but with limited differences between stores of different types. More research is needed on measuring rural environmental determinants of diet in Canada.

Analysis of distribution systems for supply of synthetic grain protectants to maize smallholder farmers in Zimbabwe: Implications for hermetic grain storage bag distribution

Grain storage in pesticide-free hermetic bags is a promising alternative to synthetic pesticide treatment and storage in polypropylene bags for smallholder farmers but the hermetic bags are not conveniently available to rural customers. Developing a commercial hermetic storage bag distribution chain that supplies bags to smallholder farmers is a challenge for manufacturers. We therefore examined the factors affecting the design of grain synthetic insecticide distribution channels to draw lessons for hermetic bag manufacturers to consider. Key informant interviews with insecticide manufacturers and/or distributors and agricultural merchants along the supply chain from national to grassroots level were complemented with farmer focus group discussions. The insecticide distribution channels were analyzed in terms of channel length and breath. Some of the factors that influenced the length of the insecticide distribution channel included the manufacturer's financial, human and technological resources; the value-to-volume ratio of insecticide products; and the sparse geographic concentration of smallholder farmers. The number of intermediaries in each channel depended on farmer purchase habits, product features and market factors. Given the small operational scale of local insecticide formulators, distribution was mainly through intermediaries. The shorter one-tier supermarket distribution channel primarily served urban consumers while the traditional two-tier wholesaler-retailer channel served rural customers. To penetrate the rural smallholder market segment, the longer channel that placed inventory closer to farmers will continue to be the main route for hermetic bag manufacturers. With a low value-to-volume ratio product feature, collaboration between manufacturers of hermetic bags and rural retailers will be essential. In addition, a large-package delivery approach that aggregates retail orders for a particular farming radius should be considered.

Backyard Agricultural Production as a Strategy for Strengthening Local Economy: The Case of Chontla and Tempoal, Mexico

In order to define chain strategies for a backyard agricultural production system, this study identified agricultural products produced by high development priority communities with indigenous presence located in the Chontla and Tempoal municipalities in Veracruz, Mexico. The production system was integrated into a generic model decomposing the supply chain into hierarchical components. Data were collected through a face-to-face semistructured questionnaire based on statistical sampling of rural households, backyard producers, intermediaries, retailers, and wholesalers, as well as municipal authorities. The research was carried out from January 2017 to June 2018 and a computational program was designed to analyze the data. As a result, products were identified and their production destinations were quantified. Moreover, it revealed a backyard agricultural supply chain of five echelons with opportunities for improvement in areas such as unstructured agricultural processes and practices, inappropriate product storage and handling, and the lack of production records, and up to three intermediaries that sequentially drove up product cost in regional consumption centers. In this study, 20.9% of total production was destined for sale, 34.8% for self-consumption, and 44.2% was noncommercialized. Nopal, creole pumpkin, coriander, plum, passion fruit, and jobo were products with greater economic value for noncommercialized production. An improvement strategy would be to build inclusive agro-food chains through consolidated centers of backyard agricultural products.

SWOC Analysis of Kirana Shops

The private village shops are the backbone of rural retail marketing. Private retail shops are ideal agencies for village distribution. There are around 2 million sales outlets at the retail level in rural India. One retail shop is serving around 600 families in the rural retail marketing. The retailer to consumer ratio has been very low with many such shops often located close to people residence, near to home and at the corner of the street, thus making location and convenience a major factor for their popularity. Kirana shop is one of the easiest ways to generate self- employment as it requires limited investment in land, capital and human resource. Kirana shops are unique business models in India especially in rural areas which are offering personal services and quality products as per demand of customers. A Kirana shop normally a range from 25 to 400 square feet with a various range of products which are daily requirement of customers. The total area of Sangli district is 8,572 sq. Mt. and there are 10 talukas and 734 towns in Sangli district and registered kirana shops are 5,741. The researcher has collected required information and data from Kirana shopkeepers in Sangli district. The primary data is collected through questionnaire. Discussion, interviews, observation and necessary field work. The sample selection of kirana shops have been selected on the basis of ‘Stratified Sampling Method’. While selecting villages, factors considered are the geographical location of taluka, such as East, West, North, South and Middle, and one village from each direction has selected Therefore, researcher has used ‘ Proportionate Sampling Method’ for selecting taluka- wise kirana shops. Researcher has found that the kirana shops are competing with local bazaars which are to be started by big traders and wholesalers in the sample study area. Competition is the major factor for existence of Kirana shops. Recovery of dues from customers is another challenging problem of the existence of Kirana shops, The consumer behavior is changing because of new technology. Fashions, life styles etc. However, changing consumer behavior is affecting rural based kirana shops. So, now a day, they are suffering for their existence.

Analysis of red pepper marketing: evidence from northwest Ethiopia

Red pepper is the world’s second important vegetable ranking after tomatoes. It is the most common spice type which is produced for both commercial and consumption purposes due to its great role in flavoring, food coloring and source of vitamins and minerals. It is also an important cash crop for households and 68% production is for commercial purpose in Amhara region of Ethiopia. However, empirical evidence is lacking on market chain of red pepper in northwest Ethiopia. Therefore, this research was attempted to analyze the market chain of red pepper and the factors that determine the supply of red pepper to the market. Primary data were collected through a semi-structured interview’s schedule administered on 385 red pepper producers and 47 traders selected using simple random sampling technique. Moreover, the survey was supplemented by using secondary data, focus group discussions and key informant interviews. Furthermore, combinations of data analysis methods such as the descriptive and econometrics model were used for data analysis. The producers’ survey result revealed that 92.47% of red pepper output was supplied to the market. Moreover, the main receivers of red pepper output were district wholesalers, district retailers and district assemblers (collectors) who possess 60.2%, 13.25% and 10.25%, respectively. This implies that district wholesalers took the lion share across the red pepper market channels. The remaining amount were traded by rural retailer and district urban wholesalers (about 12.12%). Furthermore, the multiple linear regression model result revealed that various policy-relevant variables such as access to extension (p < 0.1), yield (p < 0.01), experience (p < 0.1), off-farm income (p < 0.05) and market price (p < 0.01) influenced the marketable supply of red pepper significantly. Generally, red pepper is one of the most important spice which is mainly produced for commercial purpose yet various production and marketing constraints negatively influenced. Therefore, spice producers, development agents, agricultural experts, research institutions, the Ethiopian government and partner organizations should give special attention for extension service, introducing productive and disease-resistant pepper varieties and infrastructure development to enhance the production and commercial value of red pepper at national and international levels.

Assessing the Social Media Use and Needs of Small Rural Retailers: Implications for Extension Program Support

To assess small rural retailers' use of social media and the role of social media in their business sustainability, we conducted focus group interviews with small business owners/managers from rural communities in a midwestern state. Participants revealed strong interest in social media, especially for use in sales and marketing. However, their engagement in social media was limited due to lack of knowledge and resources (i.e., time, human resources, financial resources, effectiveness measurement) related to developing and updating content. On the basis of these findings, we examine implications for Extension professionals and outreach educators regarding social media needs and programming for small rural businesses.

RETRACTED ARTICLE: Business service network node optimization and resource integration based on the construction of logistics information systems

With the rapid development of rural retail enterprises, China’s chain retail enterprises attach increasing importance to integration management of the supermarket and the production base, but business logistics service network need to improve the way of integration optimization. How to integrate nodes between supermarket and commercial logistics distribution centre and production base is of great significance to the development of China’s commercial enterprises. In this paper, the author only selected the nodes of logistics distribution centre, supermarket chains, production base and other commercial service network for simple optimization analysis. When analysing the logistics distribution centre of retail supermarket, the paper studies the location selection modelling; When analysing the distribution routes from the production and planting base to the distribution centre, the paper studies the optimization of transportation routes according to TSP model; In the study of how to optimize the nodes of business outlets from distribution centre to supermarket stores, VRP model was adopted to analyse the paper. The supply chain process of commercial service network can be optimized by the construction of logistics information systems, information management of processing and distribution, and distribution route. Based on the relationship between commercial logistics operation cost and inventory, this paper proposes the establishment of inventory management decision support system. Through the rapid exchange of information between the distribution centre and the store, the inventory safety of the store can be guaranteed, while the product stock of the store can be reduced as much as possible, thus reducing the total cost of the operation of the supermarket. Through such nodes integrated optimization analysis, can achieve the intensive development of business logistics service network.

The role of independent retailers in sustaining rural society: a study in rural India

ABSTRACTRetailing is the largest non-farm occupation in rural India. Unorganised retailers provide support for rural socioeconomic life by disseminating information, ensuring availability of goods/services, providing credit to villagers, and allowing barter systems in India. These indicate the embeddedness of unorganised retailers in India’s rural societies. Store premises in villages are the hubs of social interactions, yet chain stores are not seen to enable such benefits for villages. Hypotheses about the importance of rural retailer independents are developed in light of existing literature. This article presents findings from a survey constructed to research independent retailers by collecting a stratified random sample of villagers in the state of West Bengal, India. Survey responses were subjected to an exploratory factor analysis (EFA) to determine latent constructs. Seven identified constructs were confirmed using confirmatory factor analysis (CFA). Structural equation modelling (SEM) helped determine the relationships of six antecedent factors with the resultant factor, namely, the need for preservation, and the sustainability of rural independents discussed.

Distribution medium in rural retailing

When a company decides to sell its products and services in a rural emerging market, one of the most important decisions it will make is the design of its distribution network. While a company operating in a developed market needs to carefully consider its distribution network design in order to achieve profitability, companies operating in rural emerging market face particular challenges because of the low density of the population and poorly developed transportation infrastructure. Indian rural market poses gargantuan challenges for the marketers. To fill the retail centers which exist in about 6 lakhs odd villages is a very challenging task for marketers. The present paper analyses different distribution channels that can be effectively used in rural retailing. For every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle. The main advantage of this system is that it facilitates market penetration in the interiors of market. However, the firm must ensure is that it facilitates market penetration in the interiors of the market. Thus successful company will be one which meets consumer's expectations through products offered at affordable cost and still is in position to earn a decent return on investment because of its strong, efficient and intelligent distribution channel.

Rural Retailing for Grocery Items: An Empirical Study

Rural Retailing for Grocery Items: An Empirical Study

The effect of embeddedness on purchase behaviour of rural unorganised retailers: implications for transnational corporations in developing economies

This study began with the identification of the antecedents of the purchase behaviour of rural independent retailers through a survey of experts and specialists in rural marketing. The evidence from social sciences shows that retail markets in the economically less developed countries function in similar ways. Such a similarity in social structures may be explained using the concept of embeddedness. The concept of embeddedness has, therefore, been used to select the antecedents for developing a questionnaire. Exploratory and confirmatory factor analyses helped in validating the scale and in identifying the significant antecedents of purchase behaviour. The significant antecedents of purchase behaviour have been used to design a conjoint study. Following the conjoint study, the utility values of the antecedents of the purchase behaviour of are computed. Certain optimum combinations of these antecedents are also presented.

Retail revolution and the village shop, c. 1660–1860

AbstractVillage shops have been largely overlooked in the recent literature on British retailing in the eighteenth and nineteenth centuries, which has sought to redefine the parameters and timing of retail transformation. While urban shops have been explored in detail, often in ways that highlight their role in a parallel transformation in consumption patterns, little attempt has been made to look inside village shops or examine the character and practices of rural retailers. This article addresses this lacuna and offers fresh insights into the shifting position of village shops in these broader economic, business, and social changes. Taking a long view of the period c. 1660–1860, it draws on a wide range of sources to examine the stock sold and the degree of specialization exhibited by village shops, and the changing trading practices of village shopkeepers, including the provision of credit, the pricing of goods, and marketing activities. In doing so, the article highlights both long‐term continuities and important innovations of the type that also characterize urban shops, and argues that village shops, while central to rural social and economic networks, were also intimately bound into broader retail systems.

Consumer Acceptance of Leafy African Indigenous Vegetables: Comparison Between Rural and Urban Dwellers

ABSTRACTUnderstanding consumer acceptance of leafy African indigenous vegetables (AIVs) is important in enhancing their consumption levels to increase micronutrient intake. Cooked leaves from AIVs are traditionally consumed together with starchy staple food. Acceptance of leafy AIVs for consumption was evaluated using a multivariate probit model. Due to potential heterogeneity in consumer characteristics, a comparison was made between rural and urban dwellers. A stratified multistage sampling technique was used to select a sample of 168 rural and 282 urban respondents and data were collected using a pretested semistructured questionnaire. African night shade (Solanum scabrum Mill.) had the highest acceptance level, followed by Cowpea (Vigna unguiculata L. Walp.) and Slender leaf (Crotalaria brevidens Benth) was least accepted by rural and urban dwellers. With the exception of Jute mallow (Corchorus olitorius L.), all vegetables were better accepted by rural than urban dwellers, with differences between cowpea and Amaranth (Amaranthus cruentus L.). Age and occupation influenced acceptance of leafy AIVs by rural dwellers, but gender, household size, market information, and retail price explained their acceptance by urban dwellers. For rural and urban dwellers, income and market distance decreased and increased acceptance of leafy AIVs, respectively. Improved knowledge of AIVs among urban male and younger rural household decision makers could increase acceptance of leafy AIVs.

The antecedents on rural distribution problem and rural retailer's preference towards Pepsico India holdings private limited in Tamilnadu, India

With the growth in the retail industry, the corresponding demand for real estate is also being created. Further, with the online medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for retail companies, both domestic and international. We have studied various factors for retailer preference towards PepsiCo products and problems faced in the distribution channel in the rural market in Tamilnadu, India. In this research study, we examine the retailer preference towards PepsiCo products and problems faced in the distribution channel in rural areas, retailer preference for PepsiCo products in rural areas; researcher collected the list of rural retailers in Tamilnadu and from the local distributor database list and from the PepsiCo Ltd. distributor list. Only rural retailers that had operation for at least three years were included in the study. The data was collected through in-depth personal interviews with the rural retailers. These strategies are leads to capturing retailer preference towards PepsiCo products and problems faced in the distribution channel.