Value-based Marketing Research Articles

Marketing depression care management to employers: design of a randomized controlled trial

BackgroundRandomized trials demonstrate that depression care management can improve clinical and work outcomes sufficiently for selected employers to realize a return on investment. Employers can now purchase depression products that provide depression care management, defined as employee screening, education, monitoring, and clinician feedback for all depressed employees. We developed an intervention to encourage employers to purchase a depression product that offers the type, intensity, and duration of care management shown to improve clinical and work outcomes.MethodsIn a randomized controlled trial conducted with 360 employers of 30 regional business coalitions, the research team proposes to compare the impact of a value-based marketing intervention to usual-care marketing on employer purchase of depression products. The study will also identify mediators and organizational-level moderators of intervention impact. Employers randomized to the value-based condition receive a presentation encouraging them to purchase depression products scientifically shown to benefit the employee and the employer. Employers randomized to the usual-care condition receive a presentation encouraging them to monitor and improve quality indicators for outpatient depression treatment. Because previous research demonstrates that the usual-care intervention will have little to no impact on employer purchasing, depression product purchasing rates in the usual-care condition capture vendor efforts to market depression products to employers in both conditions while the value-based intervention is being conducted. Employers in both conditions are also provided free technical assistance to undertake the actions each presentation encourages. The research team will use intent-to-treat models of all available data to evaluate intervention impact on the purchase of depression products using a cumulative incidence analysis of 12- and 24-month data.DiscussionBy addressing the 'value to whom?' question, the study advances knowledge about one of the most pivotal problems in the translation of evidence-based care to 'real world' settings: whether purchasers can be influenced to buy healthcare products on the basis of value and not exclusively on the basis of cost. If value-based marketing increases depression product purchase rates over usual care, this study will provide encouragement to market new healthcare products on the basis of the product's value to the purchaser as well as the recipient of care.Trial RegistrationClinical Trials Registration Number: NCT01013220

Critical factors for marketing urban cultural tourism: a conceptual model

Cultural tourism is one of the largest and fastest growing global tourism markets, and marketing plays an important role in promoting cultural tourism destinations and increasing their competitiveness and attractiveness. Based on the 'value-based marketing' concept of Kotler and Keller (2008), this study takes a comprehensive overview of previous literature and identifies three dimensions which embrace a series of factors related to the marketing of urban cultural tourism. First, 'value exploration' consists of segmentation, targeting and positioning – the essence of strategic marketing. This study demonstrates that cultural tourism market can be segmented by six factors. Some elements are also proposed to craft a city's positioning. The second dimension is 'value creation', and authenticity, inclusiveness and creativity are the three critical factors for developing cultural tourism products. Third, 'value delivery' is concerned with how a city can deliver the new value offerings more efficiently. The establishment of partnerships and the deployment of supporting resources are deemed as crucial. Finally, the conceptual model of this study could be presented as a base line for further primary research.

The relationship between beef quality and carcass quality attributes measured under commercial conditions

Introduction Objective measures of beef carcass quality appear to resolve some of the issues surrounding the subjective aspect of beef carcass classification (Allen and Finnerty 2000). Carcass conformation is important to the producer and processor whereas meat colour and tenderness are important to the consumer. Yet eating quality is not part of the current grading system. In this study, the relationships between carcass yield traits in commercial cattle and objective measures of meat quality were analysed considering both VIA predicted and recorded weights of primals. The aim was to establish whether both carcass yield and meat quality goals can be achieved in a value-based marketing system that rewards producers on both meat yield and meat quality parameters.

Video image analysis as a potential grading system for Uruguayan beef carcasses

A study was conducted in 2 phases to evaluate the effectiveness of 1) the VIAscan Beef Carcass System (BCSys; hot carcass system) and the CVS BeefCam (chilled carcass system), used independently or in combination, to predict Uruguayan beef carcass fabrication yields; and 2) the CVS BeefCam to segregate Uruguayan beef carcasses into groups that differ in the Warner-Bratzler shear force (WBSF) values of their LM steaks. The results from the meat yield phase of the present study indicated that the prediction of saleable meat yield percentages from Uruguayan beef carcasses by use of the BCSys or CVS BeefCam is similar to, or slightly better than, the use of USDA yield grade calculated to the nearest 0.1 and was much more effective than prediction based on Uruguay National Institute of Meat (INAC) grades. A further improvement in fabrication yield prediction could be obtained by use of a dual-component video image analysis (VIA) system. Whichever method of VIA prediction of fabrication yield is used, a single predicted value of fabrication yield for every carcass removes an impediment to the implementation of a value-based pricing system. Additionally, a VIA method of predicting carcass yield has the advantage over the current INAC classification system in that estimates would be produced by an instrument rather than by packing plant personnel, which would appeal to cattle producers. Results from the tenderness phase of the study indicated that the CVS BeefCam output variable for marbling was not (P > 0.05) able to segregate steer and heifer carcasses into groups that differed in WBSF values. In addition, the results of segregating steer and heifer carcasses according to muscle color output variables indicate that muscle maturity and skeletal maturity were useful for segregating carcasses according to differences in WBSF values of their steaks (P > 0.05). Use of VIA to predict beef carcass fabrication yields could improve accuracy and reduce subjectivity in comparison with use of current INAC grades. Use of VIA to sort carcasses according to muscle color would allow for the marketing of more consistent beef products with respect to tenderness. This would help facilitate the initiation of a value-based marketing system for the Uruguayan beef industry.

Current usage and future development of the Meat Standards Australia (MSA) grading system

Progress in the development and adoption of the Meat Standards Australia system has encouraged substantial change and an improved consumer awareness at all points of the Australian beef production chain. The system is moving from niche to mainstream market application with the exciting potential to transform many industry practices and build a more direct consumer focus. The system aims to accurately predict consumer satisfaction levels for individual cooked beef portions. This is a major advance on grading systems that classify carcasses into groups of like appearance. A prediction model was developed based on consumer testing and has proved to be useful in categorising a wide range of beef into consumer grades within cooking methods. These provide a basis to ensure a predictable eating quality result for the consumer and a mechanism to align product description and pricing throughout the production chain. When used in value-based marketing systems financial reward can be directly linked to consumer satisfaction encouraging a consumer-focussed industry. Research is proceeding to extend and improve the accuracy of the prediction model encompassing additional cattle types and cooking methods. Several projects in other countries are adding insights into the relative response of consumers from varied cultural backgrounds. It is hoped that further international collaboration will facilitate use of the developed technology to improve consumer value and industry returns through improved product consistency in global markets.

Breeding objectives for Targhee sheep1

Breeding objectives were developed for Targhee sheep under rangeland production conditions. Traits considered were those for which EPD were available from the US National Sheep Improvement Program and included direct and maternal effects on 120-d weaning weight (WW and MM, respectively); yearling weight (YW); yearling fleece weight, fiber diameter, and staple length; and percent lamb crop (PLC), measured as the number of lambs born per 100 ewes lambing. A bioeconomic model was used to predict the effects of a change of 1 additive SD in EPD for each trait, holding all other traits constant at their mean, on animal performance, feed requirements, feed costs, and economic returns. Resulting economic weightings were then used to derive selection indexes. Indexes were derived separately for 3 prolificacy levels (1.41, 1.55, and 1.70 lambs/ewe lambing), 2 triplet survival levels (50 and 67%), 2 lamb pricing policies (with or without discounting of prices for heavy feeder lambs), and 3 forage cost scenarios (renting pasture, purchasing hay, or reducing flock size to accommodate increased nutrient requirements for production). Increasing PLC generally had the largest impact on profitability, although an increase in WW was equally important, with low feed costs and no discounting of prices for heavy feeder lambs. Increases in PLC were recommended at all 3 prolificacy levels, but with low triplet survival the value of increasing PLC eventually declined as the mean litter size increased to approximately 2.15 lambs/ewe lambing and above. Increasing YW (independent of WW) increased ewe maintenance costs and reduced profitability. Predicted changes in breeding values for WW and YW under index selection varied with lamb pricing policy and feed costs. With low feed costs or no discounts for heavy lambs, YW increased at a modest rate in association with increasing WW, but with high feed costs or discounting of heavy lambs, genetic trends in WW were reduced by approximately 50% to constrain increases in YW. Changes in EPD for MM or fleece traits generally had smaller effects on profitability than changes in PLC, WW, and YW. Two indexes designed to address current rangeland production conditions (low forage costs and discounting of heavy feeder lambs) or more intensive and integrated production with retained ownership and value-based marketing of lambs (higher forage costs and no discounting of heavy lambs) were anticipated to meet the needs of most Targhee producers.

Evaluation of Video Image Analysis (VIA) technology to predict meat yield of sheep carcasses online under abattoir conditions

Accurate estimates of carcass composition and eating quality are critical to the introduction and the success of a value-based marketing system (VBMS) and to help address increased consumer demands for leaner meat with higher quality. Currently in the UK, carcass composition is assessed by a subjective carcass classification system based on the EUROP conformation system, and a visual assessment of fat cover using a numeric fat score (“MLC Scoring”) (Anderson, 2003). Objective, image analysis based systems to classify carcasses into current classification categories have been studied (Allen and Finnery, 2000) and are in use in the beef industry in the EU. However, the introduction of automatic technologies such as VIA may also have considerable potential for prediction of lean meat yield of the carcass. There is growing interest in the possibility of developing payment criteria which are based on carcass meat yield. Therefore, the present research project investigated the potential of VIA technology to predict meat yield in terms of saleable meat yield (SMY), saleable primal meat yield (SPMY) and the carcass components leg, chump, loin and shoulder in lamb.

Impact of Beef Quality on Market Signals Transmitted by Grid Pricing

Value-based marketing is shaping cattle production; however, market signals differ dramatically depending on carcass quality. This study applies a two-stage coefficients of separate determination procedure to four regional fed cattle datasets sorted by grid value and by carcass quality attributes. Weight is the strongest signal sent when higher valued cattle and better quality cattle are sold on a grid. Quality characteristics send stronger signals when lower valued cattle and poorer quality cattle are sold on a grid. Producers of lower quality cattle can potentially gain $52 to $149 per head by improving quality and $113 to $150 per head by adding weight.

Breeding strategies for the development of the Australian beef industry: an overview

Strategic directions for the period 2010 to 2020 and research and development needs are considered for the Australian Beef Industry from the breeding sector’s perspective. These are related to the way major technologies are developed for an industry, the current status and likely trends in market development and appropriation of benefits to the consumer, processor, commercial beef producer and breeding sectors. The primary strategic needs identified are: (i) understand the functional biology for the major production environments (supply chain packages), (ii) accelerate the speed of genetic improvement for production environment breeding goals based on commercial sector profitability and the dissemination of superior genetic material to this sector, and (iii) retain and develop the Beef Cooperative Research Centre concept over the period. Tactics for realising each strategy are considered. Rigorously designed industry-level studies based on a genotype × environment interaction approach, involving all major production environments and breeds, have an important role to play, as do the serial development of measuring equipment and procedures for carcass quality and yield, body maintenance, disease management and maternal performance. Information and communication, molecular genetics and artificial insemination technologies, along with formal progeny testing and an extended BREEDPLAN system, will be increasingly used by the breeding as well as commercial industry sectors to more consistently meet particular market demands. Carefully executed progeny testing is a pragmatic and necessary breeding approach for the period, serving a number of important purposes. The beef industry as a whole will need to take more responsibility for its genetic improvement element by: managing the appropriation of benefits across sectors, developing an increasingly effective system of value-based marketing and, for each sector and production environment, a more appropriate program of capacity building. The industry could now usefully consider the further development of its activity to address these longer-term strategic needs.

Risk Analysis for Beef Cow-Calf Retained Ownership Decision Making

Cow-calf producers recognize the value of postweaning performance information and have collected a large volume of data through alliances and university feed-out programs. These statistics are largely used to address and guide production decisions including genetic, health and management issues. Value Based Marketing (VBM) of fed cattle is increasingly popular, and individual animal value is determined based on specific carcass merits. This system of marketing increases income variability compared to traditional liveweight marketing of fed cattle. This research is designed to illustrate how feedlot and carcass performance information can be incorporated into the cow-calf producer's risk analysis decisions regarding retained ownership from weaning to harvest. Economic risk of retaining ownership is based on uncertainty of market conditions, cattle performance and expected income based on carcass merits. This study addresses utilization of historical performance data to compare the market value of feeder cattle with their expected value as finished cattle in a VBM system. From a feeder cattle producer's perspective, this is a very important issue. If, from past experience with the same or similar genetics and management, a producer knows with some degree of certainty that his cattle will perform well in the feedlot and/or in terms of carcass merits, then the market price may significantly undervalue those cattle. The producer would be better off to retain ownership of the calves or to market feeder cattle through some alternative means (e.g., direct sales to a cattle feeder with knowledge the cattle's performance potential) in order to receive a price that more accurately reflects their true value.

Possibilities with today's reproductive technologies

Reproductive efficiency is critical to economic viability for cow/calf producers; however, very few producers take advantage of available reproductive technologies that can increase profitability. Today, more opportunities are available for producers who want to capture value from known genetics. Through the use of artificial insemination (AI), the average producer has access to a wide range of high-accuracy sires that can be selected to match production goals. Systems to synchronize estrus and ovulation can now produce pregnancy rates to a single fixed-timed AI that are 10–15% greater than those of the previous generation. Increased age and weight of calves at weaning is sufficient in some situations to pay for the cost of synchronization and AI. As a result of synchronization, more cows calve early the next year and in subsequent years of synchronization. The breeding season can be shortened without reducing end-of-season pregnancy rates, since synchronized cows have one more chance to conceive than unsynchronized cows in a 22–25 day interval. Cow nutrition can be more economically and precisely managed with a shorter breeding period. Producers that establish AI programs now will be prepared to take advantage of newly identified superior genetics or other technologies, e.g. sexed semen, when they become available. Trends towards more value-based marketing and improvements in pregnancy rates from synchronization systems, make this a key time to be aware of the possibilities using reproductive technologies.

Development and validation of equations utilizing lamb vision system output to predict lamb carcass fabrication yields.

This study was performed to validate previous equations and to develop and evaluate new regression equations for predicting lamb carcass fabrication yields using outputs from a lamb vision system-hot carcass component (LVS-HCC) and the lamb vision system-chilled carcass LM imaging component (LVS-CCC). Lamb carcasses (n = 149) were selected after slaughter, imaged hot using the LVS-HCC, and chilled for 24 to 48 h at -3 to 1 degrees C. Chilled carcasses yield grades (YG) were assigned on-line by USDA graders and by expert USDA grading supervisors with unlimited time and access to the carcasses. Before fabrication, carcasses were ribbed between the 12th and 13th ribs and imaged using the LVS-CCC. Carcasses were fabricated into bone-in subprimal/primal cuts. Yields calculated included 1) saleable meat yield (SMY); 2) subprimal yield (SPY); and 3) fat yield (FY). On-line (whole-number) USDA YG accounted for 59, 58, and 64%; expert (whole-number) USDA YG explained 59, 59, and 65%; and expert (nearest-tenth) USDA YG accounted for 60, 60, and 67% of the observed variation in SMY, SPY, and FY, respectively. The best prediction equation developed in this trial using LVS-HCC output and hot carcass weight as independent variables explained 68, 62, and 74% of the variation in SMY, SPY, and FY, respectively. Addition of output from LVS-CCC improved predictive accuracy of the equations; the combined output equations explained 72 and 66% of the variability in SMY and SPY, respectively. Accuracy and repeatability of measurement of LM area made with the LVS-CCC also was assessed, and results suggested that use of LVS-CCC provided reasonably accurate (R2 = 0.59) and highly repeatable (repeatability = 0.98) measurements of LM area. Compared with USDA YG, use of the dual-component lamb vision system to predict cut yields of lamb carcasses improved accuracy and precision, suggesting that this system could have an application as an objective means for pricing carcasses in a value-based marketing system.

On ‘Value–Based Marketing’ (1)

On ‘Value–Based Marketing’ (1)

The Changing Market Structure For The American Beef Industry

First, we have the traditional beef system producing and marketing commodity beef. Second, we have a value-based beef system producing and marketing high quality beef designed to meet tight consumer specifications. A critical decision that today’s beef cow producers have to make is to decide which system – commodity beef or value-based beef – they are going to target their production towards. The beef industry’s transition into value-based marketing is generating rapid change in today’s beef industry.

Value-based marketing: Marketing strategies for corporate growth and shareholder value

Value-based marketing: Marketing strategies for corporate growth and shareholder value

Value-based marketing strategies

Value-based marketing strategies

Value-based marketing

Marketing has not had the impact on the boardroom that its importance justifies. A major reason is that today's top management are focused on shareholder value. Surprisingly, marketing has never sought to align itself to this goal, even though effective marketing is the central determinant of returns to investors. This paper explores how marketing creates value and shows how shareholder value analysis can be used as a powerful technique for developing and justifying marketing strategies.

Sorting feeder cattle with a system that integrates ultrasound backfat and marbling estimates with a model that maximizes feedlot profitability in value-based marketing

Studies were conducted to evaluate a feeder cattle sorting system for tracking future carcass merit. The Kansas State University (KSU) sorting system combines initial body weight, ultrasound backfat thickness and marbling score with economic data to project the number of days on feed that will maximize profitability. The KSU sorting system was applied, 3 to 4 mo before slaughter, on 4101 yearling steers at two large feedlots located in southern Alberta. In Feedlot 1, steers averaging 408.7 kg (SD = 45.2 kg) were randomly assigned to two treatment groups: sorted by weight (control; n = 856) and sorted by the KSU sorting system (n = 849). In Feedlot 2, steers averaging 494.4 kg (SD = 42.3 kg) were randomly assigned to two treatment groups: not sorted (control; n = 798) and sorted by the KSU sorting system (n = 1598). Whole pens were marketed when the majority of steers in the pen approached the carcass weight and grade characteristics required for optimal return. The KSU sorted steers gained 0.12 kg d−1 faster at Feedlot 1 (P = 0.043) and 0.05 kg d−1 faster at Feedlot 2 (P = 0.036) than control steers. Feed intake, feed efficiency, death loss, warm carcass weight, backfat thickness, l. dorsi area, marbling score and lean meat yield were similar between sorting systems regardless of feedlot. The KSU sorting system reduced dark cutting (B4) carcasses to zero (0.0% KSU vs. 1.3% Control; P = 0.005) and increased AAA quality grade carcasses by 40.8% (31.4% KSU vs. 22.3% Control; P = 0.001) in Feedlot 1. In Feedlot 2, the KSU sorting system reduced over-fat carcasses (Y3) by 47.4% (10.2% KSU vs. 19.4% Control; P = 0.001) and increased AA carcasses by 14.7% (52.3% KSU vs. 45.6% Control; P = 0.003). These changes resulted in the KSU sorted steers being more profitable than control steers by $27.67 head−1 in Feedlot 1 and $15.22 head−1 in Feedlot 2. The increased net return was primarily due to improved weight gains and a more desirable distribution of carcass yield and quality grades. Key words: Ultrasound, carcass uniformity, steers

Influence of body condition score on live and carcass value of cull beef cows.

Mature beef cows (n = 88) were slaughtered to determine the influence of body condition score (BCS) on carcass and live animal value. Cows were weighed and assigned a BCS (9-point scale), 24 h before slaughter. Hide and by-products weights were recorded during harvest. After a 48-h chill period, the right side of each carcass was fabricated into boneless subprimal cuts, minor cuts, lean trim, fat, and bone. Weights were recorded at all stages of fabrication. Carcass values (U.S.$/100 kg of hot carcass weight) were calculated for U.S. Utility and U.S. Cutter grades, as well as for the Utility/Cutter mix for each BCS. Gross value included the carcass value and the value of the hide and byproducts, whereas net value was calculated after harvest and fabrication costs and by-product value were considered. Live value (U.S.$/100 kg of live weight) was computed by dividing the net value by the animal's live weight 24 h before harvest. The value of the hide and by-products for BCS-2 cows was greater (P<.05) than for cows assigned a BCS of 3 through 8. Even though U.S. Utility carcasses from BCS-8 cows produced the least (P<.05) valuable subprimal cuts from the chuck, loin, and round, the gross and net values of BCS-8 cows were greater (P<.05) than those of BCS-3, 4, 5, and 6. Within the grade of U.S. Cutter, carcasses from BCS-6 cows had the highest (P<.05), and BCS-2 cows had the lowest (P<.05), gross and net values. Across the U.S. Utility/Cutter mix, cows designated with a BCS of 7 and 8 had greater (P<.05) gross and net values than cows assigned a BCS of 6, or lower. Live value increased linearly (P = .0002) from a low of $76.10/100 kg for BCS-2 cows to a high of $90.84/100 kg for BCS-7 cows. Carcasses from BCS-6 cows were relatively lean (8.4 mm of fat opposite of the longissimus muscle), and approximately 73% of the carcasses achieved a quality grade of U.S. Utility. Moreover, carcasses from BCS-6 cows had the highest total carcass values and live values comparable (P>.05) to BCS-7 cows. Information from this study can be used by the non-fed beef industry to establish a value-based marketing system. Data from this study would indicate that marketing cull beef cows at a BCS of 6 could optimize economic returns to both cow-calf producers and non-fed beef packers.

Dual-component video image analysis system (VIASCAN) as a predictor of beef carcass red meat yield percentage and for augmenting application of USDA yield grades.

An improved ability to quantify differences in the fabrication yields of beef carcasses would facilitate the application of value-based marketing. This study was conducted to evaluate the ability of the Dual-Component Australian VIASCAN to 1) predict fabricated beef subprimal yields as a percentage of carcass weight at each of three fat-trim levels and 2) augment USDA yield grading, thereby improving accuracy of grade placement. Steer and heifer carcasses (n = 240) were evaluated using VIASCAN, as well as by USDA expert and online graders, before fabrication of carcasses to each of three fat-trim levels. Expert yield grade (YG), online YG, VIASCAN estimates, and VIASCAN estimated ribeye area used to augment actual and expert grader estimates of the remaining YG factors (adjusted fat thickness, percentage of kidney-pelvic-heart fat, and hot carcass weight), respectively, 1) accounted for 51, 37, 46, and 55% of the variation in fabricated yields of commodity-trimmed subprimals, 2) accounted for 74, 54, 66, and 75% of the variation in fabricated yields of closely trimmed subprimals, and 3) accounted for 74, 54, 71, and 75% of the variation in fabricated yields of very closely trimmed subprimals. The VIASCAN system predicted fabrication yields more accurately than current online yield grading and, when certain VIASCAN-measured traits were combined with some USDA yield grade factors in an augmentation system, the accuracy of cutability prediction was improved, at packing plant line speeds, to a level matching that of expert graders applying grades at a comfortable rate.