scholarly journals Providing Data Insights to Suppliers for Product Development: Incentive Analysis of an E-Tailer

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Bingqin Dai ◽  
Nian Liu ◽  
Zhaoquan Jian
Keyword(s):  
Product Development ◽  
Consumer Preferences ◽  
Critical Factor ◽  
Market Potential ◽  
Efficiency Improvement ◽  
Market Information ◽  
Improvement Rate ◽  
Pricing Decisions ◽  
Market Expansion ◽  
Pricing Power

Many suppliers invest in product development for market expansion via product development efforts. However, not all suppliers have accumulated market information, which is a critical factor for efficient product development that helps suppliers know consumer preferences better. Being aware of this, some e-tailers (e.g., JD.com) provide market information and data insights for their suppliers, which improves the latter’s product development efficiency. Supported by the market information, the market potential of suppliers’ products can be enlarged and their pricing power may be strengthened, which affects e-tailers from both positive and negative aspects. Based on these observations, we investigate an e-tailer’s incentive to share market information to its suppliers by formulating the tradeoffs among market expansion, product development efficiency, and suppliers’ pricing decisions. We find that the e-tailer prefers sharing market information with its suppliers when the latter’s product development efficiency is high, or the product development efficiency is high but the efficiency improvement rate is high.

scholarly journals Consumer Preferences and Willingness to Pay for Potting Mix with Biochar

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3432
Author(s):  
McKenzie Thomas ◽  
Kimberly L. Jensen ◽  
Dayton M. Lambert ◽  
Burton C. English ◽  
Christopher D. Clark ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Online Survey ◽  
Product Information ◽  
Consumer Preferences ◽  
Market Potential ◽  
Marginal Costs ◽  
Consumer Demographics ◽  
Market Shares ◽  
Potential Market ◽  
Dedicated Energy Crops

Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.

MARKET POTENTIAL AS A GREEN AGRICULTURAL PRODUCTION DEVELOPMENT FACTOR

2020 ◽  
Vol 10 (8) ◽  
pp. 1507-1525
Author(s):  
E.A. Aleshina ◽  
◽  
A.A. Leksina ◽  
Zh. S. Dossumova ◽  
◽  
...  
Keyword(s):  
Consumer Preferences ◽  
Organic Food ◽  
Food Products ◽  
Developed Countries ◽  
Industrial Sector ◽  
The State ◽  
Healthy Diet ◽  
Market Potential ◽  
State Management ◽  
The Developed Countries

Organic agriculture, based on natural production technologies, obtains a great potential for reversing humanity to a healthy diet and living in harmony with nature by improving the state of the ecosystem. The share of organic food products in the market of the developed countries is already quite high; and various institutional systems of the industry have been introduced and are being improved in the leading countries of the world. Domestic agribusiness is currently lagging behind in these matters, but the situation should be significantly changed by the adopted law and state standard regulating the requirements for the organic sector. In this regard, an objective need arose to substantiate the capabilities and the resource potential of the Saratov region in this sphere. Within the framework of the presented research, an interdisciplinary fundamental platform to develop the theory of the organic food products market was formed. As a result, the elements of the scientific methodology (theories, principles, factors, methods) of its functioning were identified, which made it possible to substantiate the potential capacity of the regional consumer market for organic food. The calculation was made taking into account the rational norms of food consumption that meet modern requirements for a healthy diet, the heterogeneity of consumer preferences, the price gap for the main conventional and organic products in retail and the dispersion of prices for the latter, the implementation of state policy to protect and improve the health of certain population groups. This study is intended for the state management bodies of the agro-industrial sector, the leadership of agricultural, processing and marketing enterprises, the structures of wholesale and retail food products trade and branch research institutions.

Consumer Choice and Market Expansion: Modeling, Optimization, and Estimation

2021 ◽  
Author(s):  
Ruxian Wang
Keyword(s):  
Operations Management ◽  
Expectation Maximization ◽  
Consumer Choice ◽  
Choice Behavior ◽  
Real Data ◽  
Market Size ◽  
Solution Approach ◽  
Pricing Decisions ◽  
Market Expansion ◽  
Consumer Choice Behavior

The growth of market size is crucially important to firms, although researchers often assume that market size is constant in assortment and pricing management. I develop a model that incorporates the market expansion effects into discrete consumer choice models and investigate various operations problems. Market size, measured by the number of people who are interested in the products from the same category, is largely influenced by firms’ operations strategy, and it also affects assortment planning and pricing decisions. Failure to account for market expansion effects may lead to substantial losses in demand estimation and operations management. Based on real data, this paper uses an alternating-optimization expectation-maximization method that separates the estimation of consumer choice behavior and market expansion effects to calibrate the new model. The end-to-end solution approach on modeling, operations, and estimation is readily applicable in real business.

Consumer preferences for ‘natural’ agricultural practices: Assessing methods to manage bird pests

2015 ◽  
Vol 31 (6) ◽  
pp. 516-523 ◽  
Author(s):  
Zachary Herrnstadt ◽  
Philip H. Howard ◽  
Chi-Ok Oh ◽  
Catherine A. Lindell
Keyword(s):  
Food Processing ◽  
Online Survey ◽  
Consumer Preferences ◽  
Agricultural Practices ◽  
Market Potential ◽  
Personal Health ◽  
Direct Effects ◽  
Methyl Anthranilate ◽  
Nest Boxes ◽  
Bird Management

Abstract‘Natural’ is a popular food marketing term. Although it is not well-defined, it refers primarily to inputs used for food processing, rather than agricultural practices. Given the market success of organic and non-GMO labeled foods, other agricultural practices may have the potential to develop ‘natural’ market niches while also addressing sustainability goals. We assessed perceptions of natural for one specific set of agricultural practices, bird management methods in fruit crops, utilizing a series of four focus groups. In addition, we quantified consumer preferences for these methods with a national online survey (n = 1000). The most positively received methods, falconry and nest boxes, were typically described as more natural. Conversely, the most negatively received methods, live ammunition and methyl anthranilate spray, were frequently viewed as less natural. The majority of survey respondents indicated that controlling fruit-consuming birds with natural practices was important, but an even higher percentage deemed avoiding harms to personal health as important. Because falconry and nest boxes do not have perceived direct effects on human health, they are likely to have less market potential than more established ecolabels. Communicating the use of these practices to consumers, however, may result in consumers selecting them over other products, particularly if the associated price premiums are relatively modest.

Using market information in product development

2007 ◽  
Vol 24 (4) ◽  
pp. 194-201 ◽  
Author(s):  
Helle Alsted Søndergaard ◽  
Hanne Harmsen
Keyword(s):  
Product Development ◽  
Market Information

scholarly journals Determining Consumer Perceptions of and Willingness to Pay for Appalachian Grass-Fed Beef: An Experimental Economics Approach

2011 ◽  
Vol 40 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Jason R. Evans ◽  
Gerard E. D'Souza ◽  
Alan Collins ◽  
Brown Cheryl ◽  
Mark Sperow
Keyword(s):  
Willingness To Pay ◽  
Experimental Economics ◽  
Consumer Preferences ◽  
Consumer Perceptions ◽  
Market Potential ◽  
Price Premium ◽  
Nutritional Content ◽  
Appalachian Region ◽  
Experimental Auction ◽  
Auction Mechanism

The focus of the current study was on the market potential for grass-fed beef in the Appalachian region, given that these products embody observed, experiential, nutritional, and process attributes that may appeal to a large consumer base. An in-store variant of the Becker-DeGroot-Marschack experimental auction mechanism was employed in the region to determine consumer preferences and willingness to pay. A majority of respondents preferred the grass-fed product over conventional grain-fed samples and were willing to pay a price premium to obtain it. Preferences for grass-fed were rooted largely in the associated superior nutritional content and core observed attributes.

Market potential for organic foods in Europe

2002 ◽  
Vol 104 (1) ◽  
pp. 45-62 ◽  
Author(s):  
Mette Wier ◽  
Carmen Calverley
Keyword(s):  
Willingness To Pay ◽  
Consumer Demand ◽  
Demographic Characteristics ◽  
Market Potential ◽  
Organic Foods ◽  
Market Expansion ◽  
European Markets

Examines the potential of organic foods in European markets, focusing on consumer demand for organic foods and the possibilities for market expansion. Aims to assess potential sales, to identify the factors determining buying propensity, and to identify the main market barriers. Identifies the types of consumers who purchase organic foods, classifying them according to socio‐economic and demographic characteristics. Elucidates the motives for purchasing and the willingness to pay. Identifies the main market barriers and bottlenecks, and examins the potential for future expansion.

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