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Open Access
Article
Publication date: 6 December 2021

Bailey Peterson-Wilhelm, Lawton Nalley, Alvaro Durand-Morat, Aaron Shew, Francis Tsiboe and Willy Mulimbi

Weaknesses in the grades and standards system in low-income countries across Sub-Saharan Africa undermine the transparency of agricultural markets. In the Democratic Republic of…

1664

Abstract

Purpose

Weaknesses in the grades and standards system in low-income countries across Sub-Saharan Africa undermine the transparency of agricultural markets. In the Democratic Republic of the Congo (DRC), Ghana and Mozambique rice is predominately sold in open bags and if rice price does not reflect its quality, then inefficiencies may lead to consumer welfare losses. Importantly, it is possible that impoverished communities are priced out of the market due to inflated and inefficient prices. The objective of this study is to examine determinates of rice price by estimating the impact of selected rice quality attributes on rice prices in Democratic Republic of the Congo, Ghana and Mozambique.

Design/methodology/approach

We collected 363 rice samples from open air markets in Bukavu (DRC), Nampula (Mozambique) and across Ghana in 2019. Each rice sample was analyzed in a food science lab for the quality attributes: percentage of chalk and brokens, chalk impact, length and length-to-width ratio. We used multiple regression analysis to estimate if and to what extent quality attributes were the drivers of price.

Findings

Findings suggest that there are irregularities in the Ghanaian market for broken rice and that regardless of quality, imported rice is priced higher than domestic rice. In the DRC and Mozambique, our results indicate price is driven by length and length-to-width ratio in the former and length-to-width ratio in the latter.

Research limitations/implications

Rice samples were purchased from market vendors and thus consumer preferences for attributes were not revealed.

Originality/value

These results provide valuable insight to policymakers regarding the need for proper labeling and regulation of open bag rice sales in an effort to increase consumer welfare and improve food security.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 23 March 2023

Edgar Edwin Twine, Sali Atanga Ndindeng, Gaudiose Mujawamariya, Stella Everline Adur-Okello and Celestine Kilongosi

Improving the competitiveness of East Africa's rice industries necessitates increased and viable production of rice of the quality desired by consumers. This paper aims to…

1175

Abstract

Purpose

Improving the competitiveness of East Africa's rice industries necessitates increased and viable production of rice of the quality desired by consumers. This paper aims to understand consumer preferences for rice quality attributes in Uganda and Kenya to inform the countries' rice breeding programs and value chain development interventions.

Design/methodology/approach

Rice samples are obtained from retail markets in various districts/counties across the two countries. The samples are analyzed in a grain quality laboratory for the rice's physicochemical characteristics and the resulting data are used to non-parametrically estimate hedonic price functions. District/county dummies are included to account for potential heterogeneity in consumer preferences.

Findings

Ugandan consumers are willing to pay a price premium for rice with a relatively high proportion of intact grains, but the consumers discount chalkiness. Kenyan consumers discount high amylose content and impurities. There is evidence of heterogeneity in consumer preferences for rice in Mbale, Butaleja and Arua districts of Uganda and in Kericho and Busia counties of Kenya.

Originality/value

The study makes a novel contribution to the literature on consumer preferences for rice in East Africa by applying a hedonic pricing model to the data generated from a laboratory analysis of the physicochemical characteristics of rice samples obtained from the market. Rather than base our analysis on consumers' subjective sensory assessment of the quality characteristics of rice, standard laboratory methods are used to generate the data, which enables a more objective assessment of the relationship between market prices and the quantities of attributes present in the rice samples.

Details

British Food Journal, vol. 125 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 November 2018

Michelle Childs, Byoungho Jin and William L. Tullar

Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such…

1596

Abstract

Purpose

Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution.

Design/methodology/approach

This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis.

Findings

Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions.

Originality/value

This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 August 2019

Ayodeji Oluwaseun Ogunleke and L.J.S. Baiyegunhi

The purpose of this paper is to examine households’ acceptability of local (Ofada) rice by identifying the quality attributes influencing marginal implicit prices (MIPs) paid by…

Abstract

Purpose

The purpose of this paper is to examine households’ acceptability of local (Ofada) rice by identifying the quality attributes influencing marginal implicit prices (MIPs) paid by rice consumers’ households in South-West, Nigeria.

Design/methodology/approach

The data used for this study were collected from a survey of 600 rice-consuming households in the study area. A multistage sampling technique was employed to select the respondents. Well-structured questionnaires were used to collect information on general households’ socioeconomic characteristics, their desirability and preference for local (Ofada) rice, and market prices of Ofada rice. Kendall’s concordance test was performed to confirm agreement among respondents in their rankings of the rice quality attributes. Hedonic price function was used to examine the relationship between implicit prices paid by consumers based on quality attributes of local (Ofada) rice, as observed in the market.

Findings

The result of Kendall’s coefficient of concordance revealed that there is 73.74 per cent agreement in ranking quality attributes of local (Ofada) rice consumers’ households in the study area. Colour, perceived nutrient level, taste, grain shape and rate of breakage were the most ranked quality attributes with mean attribute ranking scores of 1.56, 1.69, 3.12, 5.53 and 5.86, respectively. The result of the hedonic pricing model revealed that households are willing to pay MIPs of ₦71.03 ($0.20), ₦45.23 ($0.13), ₦32.98 ($0.09), ₦21.06 ($0.06) and ₦14.41($0.04) per kg for colour, grain cohesion, grain shape, perceived nutrient level and perceived chemical storage, respectively, while discounting MIPs of ₦60.55 ($0.17), ₦19.36 ($0.05), ₦17.14 ($0.05) and ₦6.00 ($0.02) for texture, rate of breakage, perceived freshness and low swelling capacity per kg of local (Ofada) rice, respectively.

Research limitations/implications

Continuous importation of rice into the country has many negative implications such as worsening of the poverty status of local rice farmers, unemployment of teeming youths engaged in rice value chain, and exposure to soaring and unpredictable price bringing unsustainable development. Lastly, over-dependency on rice importation, if not checked, can also permit dumping of low quality and sometimes expired rice into the country. All aforementioned reasons will make it difficult for local rice to compete favourably with imported varieties.

Practical implications

Kendall’s coefficient of concordance and Hedonic model were used as a diagnostic tools. These diagnostic tools show the need for government and relevant stakeholders to focus on improving the quality of local (Ofada) rice, especially the undesirable attributes. This could be achieved by adopting modern processing technology, that will enhance production and consumers’ acceptability, which could make local (Ofada) rice have good market share against imported brands.

Social implications

The economic value of a good is revealed by the consumer’s willingness to pay for the good, consequently increasing production through consumers’ acceptability, and improve living standard of farmers and processors through increased earnings.

Originality/value

The choice of a particular local rice, especially local (Ofada) rice, is made to estimate the effect of different attributes on the price paid by rice consumers’ households and to help in the development of effective technologies and policy that enhance better rice quality using both Kendall’s coefficient of concordance and Hedonic model to achieve the objective. For the first time this research has given clarity on the monetary value attached to local (Ofada) rice consumption by rice consumers’ households through quality attributes.

Details

British Food Journal, vol. 121 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 9 August 2018

Hatairat Sakolwitayanon, Peeyush Soni and Jourdain Damien

The purpose of this paper is to explore key attributes of organic rice that consumers use in the process of choosing organic rice, and to segment organic rice market in Bangkok…

Abstract

Purpose

The purpose of this paper is to explore key attributes of organic rice that consumers use in the process of choosing organic rice, and to segment organic rice market in Bangkok. Moreover, the study tends to identify the best clustering techniques, between latent class cluster analysis (LCCA) and traditional cluster analysis (CA), for precise segmentation.

Design/methodology/approach

Best–worst scaling (BWS) method was applied to measure the level of relative importance of organic rice attributes. Then, LCCA and CA techniques were applied to recognize market segmentation. Finally, homogeneity and heterogeneity of the resulting clusters were determined to compare performance of the two clustering techniques.

Findings

The LCCA technique was identified better than the CA in classification of consumers. According to LCCA solution, the organic rice market in Bangkok (Thailand) consisted of six distinct clusters, which can be grouped into three categories based on consumers’ profile. Organic rice consumer categories were identified as “Art of eating” and “Superior quality seeker” clusters focusing on special features and quality of the organic rice; consumer category “Basic concern” cluster heavily relied on organic certification logo and manufacturing information; and other consumer categories were “Price driven,” “Eyes on price” and “Thorough explorer” clusters.

Originality/value

This study first applies BWS score to examine consumers’ preference for organic rice attributes and segments market, providing results for practical use for retailers, producers and marketers.

Details

British Food Journal, vol. 120 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 11 June 2020

Subir Bairagi and Alvaro Durand-Morat

Investments in agricultural research and development (AgR&D) have been an engine of agricultural productivity growth; as a result, food security and poverty situations have…

Abstract

Purpose

Investments in agricultural research and development (AgR&D) have been an engine of agricultural productivity growth; as a result, food security and poverty situations have improved in many countries around the world. However, in Haiti, a small Caribbean country, neither has any formal agricultural research center (ARC) been established nor has a significant amount of money been invested for AgR&D. This paper aims to quantify whether setting up an ARC would be beneficial for Haiti.

Design/methodology/approach

A fixed-effects regression, the International Model for Policy Analysis of Agricultural Commodity and Trade impact and benefit – cost ratio (BCR) measures are used to estimate future benefits from setting up a new ARC in Haiti.

Findings

A total of US$21.0m annual investment is required for the proposed ARC, which could generate up to US$1.16bn in social benefits during the next three decades. In terms of BCR, if one dollar is invested for AgR&D in Haiti, the payoff could be US$1.33-4.52. Therefore, establishing an ARC is crucial for Haiti, as it is expected to generate positive benefits for society by helping formulate pro-farmer policies as well as disseminating modern agricultural technologies among farmers.

Originality/value

Because, to the best of the authors’ knowledge, there is no such study in Haiti’s perspective, this study contributes to the country’s literature evaluating the feasibility of establishing a new research center in Haiti with a partial equilibrium economic model.

Details

foresight, vol. 22 no. 5/6
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 2 September 2013

Lalit Mohan Kathuria and Paramjeet Gill

The study was conducted with the aim of understanding brand awareness among consumers and analyzing the attitude of consumers towards selected branded commodity food products. An…

3498

Abstract

Purpose

The study was conducted with the aim of understanding brand awareness among consumers and analyzing the attitude of consumers towards selected branded commodity food products. An attempt was also made to examine the factors influencing the purchase of selected branded commodity food products.

Design/methodology/approach

The products selected for the study were branded rice and branded sugar. A sample of 200 respondents was selected from different localities of a city in India.

Findings

Major sources of awareness, for branded rice and branded sugar, are friends/relatives/reference groups, point-of-purchase display, and retailer's recommendations. Respondents perceive free from adulterants, free from insecticides/pesticides/harmful chemicals and social status as the most important parameters of branded rice and branded sugar. The most important factors influencing the purchase of branded rice and branded sugar were found to be flavor, aroma, free from insecticides or pesticides and free from adulterants.

Research limitations/implications

Further studies can be conducted with a larger sample size. Importance of brand equity with respect to commodity products can be analyzed.

Practical implications

Marketers could frame strategies for different market segments based on demographics. Brand awareness needs to be given adequate focus by the marketers.

Originality/value

This paper has made an attempt to study purchase behaviour with respect to commodity products. Not many studies have been undertaken to analyze brand awareness, and consumers' attitudes towards branded commodity food products in developing countries like India.

Details

British Food Journal, vol. 115 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 January 2009

Chung‐Huang Huang, Ping‐Yi Huang and Yuan‐Yun Ling

In light of the global concern about the impact of trade liberalization on environment, this paper intends to measure, theoretically as well as empirically, the impact of freer…

Abstract

Purpose

In light of the global concern about the impact of trade liberalization on environment, this paper intends to measure, theoretically as well as empirically, the impact of freer rice trade on environmental quality in terms of chemical intensity, measured by a decreasing scale indicator.

Design/methodology/approach

A dynamic land allocation model is designed that incorporates rational expectations on rice price and soil degradation due to long‐term cultivation on the same piece of land. Both demands for land and pesticides are derived and empirically estimated using time‐series data in Taiwan.

Findings

The results reveal that chemical intensity may increase with freer trade. The effect of freer trade on chemical intensity was less significant in earlier days such as the 1980s than in recent years. The basic model explains, to some extent, why some country representative conveyed their concerns in the Committee of Trade and Environment under WTO about the environmental degradation due to freer trade in agriculture. It also implies that more investment on environmental protection is warranted in the course of trade liberalization.

Research limitations/implications

Given the dramatic inflation of energy prices, more elaboration on the price specification with respect to pesticides may be warranted for future researches.

Originality/value

The paper develops a rational expectations model to measure the impact of rice trade liberalization on environmental quality.

Details

China Agricultural Economic Review, vol. 1 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 21 July 2020

Mohammad Chhiddikur Rahman, Valerien Pede, Jean Balie, Isabelita M. Pabuayon, Jose M. Yorobe and Samarendu Mohanty

Because of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using…

Abstract

Purpose

Because of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using advanced econometric techniques.

Design/methodology/approach

Using a Stochastic Frontier Estimation approach on cross-sectional data, the study examines the price spread along the rice value chain to determine whether millers and wholesalers exercise market power.

Findings

Empirical results reveal that, on average, rice millers and wholesalers charge 33 and 29% above the marginal cost, respectively. This study confirms the non-competitive behavior of the rice market with wholesalers and millers wielding substantial market power

Research limitations/implications

A limitation of the study is that it does not include the retailers who also play a major role in the Bangladesh rice value chain. This is left for future study.

Originality/value

This study combines primary and secondary data collected on the Bangladesh rice sector to examine the market power of two major players along the value chain, millers and wholesalers, using an advanced econometrics approach.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 1 March 1996

Robert A. Connor

There has been increased interest in expanding the Medicare Prospective Payment System (PPS) to non-Medicare payers to provide incentives for hospitals to contain costs and to…

Abstract

There has been increased interest in expanding the Medicare Prospective Payment System (PPS) to non-Medicare payers to provide incentives for hospitals to contain costs and to concentrate in those Diagnosis-Related Groups (DRGs) which they can provide efficiently. However, this should not force low-volume, low-cost payers to subsidize high cost payers and should not penalize low Length-of-Stay (LOS), low-cost hospitals. This article proposes a new method proportional pricing to expand PPS incentives to non-Medicare payers with equity for payers and hospitals. It would also allow all-payer rate setting and premium price competition among payers to coexist.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 10 no. 3
Type: Research Article
ISSN: 1096-3367

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