Automation of modified marketing procedural system to maximize transparency: A case study of vegetables in Madanapalle market

Abstract

Purpose

Market transactions in large vegetable markets call for transparency with utmost urgency. The reason are that buyers are located at distant places and the volume of sales is very high. The purpose of this paper is to highlight the development of an automated system in market transactions in order to bring about transparency with concrete evidence available to small and medium farmers who are then able to repose trust in the system by acquiring the right price for the right product. The farmers can also confirm the effectiveness of the system by testing it themselves.

Design/methodology/approach

First, a theoretical framework of marketing procedures of larger vegetable markets has been constructed with tomato as a vegetable of study and the Madanapalle tomato market as a market studied through surveys. Second, methods of functioning in marketing procedures including pricing and auctioning have been modified according to the objective. An android-based application has been used to develop an automated model. Surveys have been conducted to understand the perceptions of farmers in marketing procedures and price determination at the village level, and to test the automated model in the study market.

Findings

Both quantitative as well as qualitative approaches indicate that, the proposed automated model in the modified marketing procedural system is of benefit to all stakeholders in the supply chain.

Research limitations/implications

In model testing, gaps in inputs from a greater number of buyers during auctioning remains a limitation of the study.

Social implications

For sustainable growth of tomatoes or any other vegetables it is essential that the farmers trust the marketing procedural system. This is possible if farmers obtain the right price for their products. Once the automated system is implemented, buyers acquire high-quality goods at desired prices, which further encourages more buyers from other regions to participate in the auctioning/tendering process stimulating an increased demand.

Originality/value

This paper is unique in its pricing function and scores of stakeholders. Pricing function involves the farmers’ input along with the buyers’ inputs whereas scores of these two stakeholders have been obtained through the inputs of commissioning agents.

Citation

Modekurti, D.P.V. (2016), "Automation of modified marketing procedural system to maximize transparency: A case study of vegetables in Madanapalle market", Journal of Agribusiness in Developing and Emerging Economies, Vol. 6 No. 1, pp. 72-88. https://doi.org/10.1108/JADEE-08-2014-0027