scholarly journals The process of vertical coordination and its consequences within the beer commodity chain

2012 ◽  
Vol 51 (No. 9) ◽  
pp. 419-426
Author(s):  
E. Veselská
Keyword(s):  
Mathematic Model ◽  
Retail Price ◽  
Commodity Chain ◽  
Vertical Coordination ◽  
Price Increases ◽  
Retail Prices ◽  
Potential Benefits ◽  
Marketing Costs ◽  
Productivity Gains ◽  
Input Prices

The paper aims to identify the potential benefits from vertical coordination within the selected commodity chain. The problem is applied to the beer commodity chain because of its high importance in the Czech agribusiness and foreign trade. On the basis of the vertical analysis of the chosen commodity chain, a mathematic model of consumer price simulation is created and the existence of vertical coordination is verified in the analysed commodity chain. This model assumes that input price increases are transmitted to consumers. The retail prices of beer are simulated by holding technology and input-output relationships constant, while production as well as marketing costs change according to the changes in input prices. The simulated retail price is then compared with the actual retail price to indicate productivity gains resulting from vertical coordination passed on to consumers. The results of the Model of Retail Price Simulation show that Czech brewery industry was in the observed period (1994–2002) vertically coordinated.

scholarly journals Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects

2021 ◽  
Vol 16 (5) ◽  
pp. 1492-1516
Author(s):  
Wenhua Hou ◽  
Yuwen Zeng
Keyword(s):  
Supply Chain ◽  
Discount Rate ◽  
Reference Price ◽  
Stackelberg Game ◽  
Lower Boundary ◽  
Retail Price ◽  
Reference Points ◽  
Price Effects ◽  
Retail Prices ◽  
Online Book

(1) Background: A binding recommended retail price has been used in several markets in a variety of forms, and the book market is a typical example. Publishers sell books to online retailers at a unit wholesale discount computed on the cover price. Retailers are then allowed to set the retail price. Therefore, if consumers regard the cover prices as reference points, then they may be more likely to purchase books if retail prices are lower than the cover prices. (2) Methods: We develop a Stackelberg game model for a book supply chain to investigates how reference price effects affect retailers and publisher’s pricing strategies. (3) Results: The results show that retailers will sell printed books at a discount only when the publisher’s wholesale discount rate is not high. Further, as the intensity of the reference price effects increases, (a) the lower boundary of the wholesale discount rate rises, (b) publishers’ profits increase and (c) retailers’ profits increase relative to the level of consumers’ e-books acceptance. (4) Conclusions: This result is related to the fact that the online retailer, such as Amazon and JD.com, like to invoke reference price effects in consumers’ minds by highlighting the printed book’s discount rate.

Selling to Reluctant Drinkers: The British Market and the International Wine Trade

Creating Wine ◽  
2011 ◽  
Author(s):  
James Simpson
Keyword(s):  
Product Quality ◽  
Temporary Increase ◽  
Commodity Chains ◽  
Small Family ◽  
Retail Prices ◽  
Marketing Costs ◽  
Fortified Wines ◽  
Wine Trade

This chapter shows that wine was traditionally a luxury because of the high and discriminatory import duties, which benefited Portuguese and Spanish producers at the expense of the French. With the reforms of the early 1860s there was a temporary increase in consumption and a switch in preference away from Iberian fortified wines toward French table wines. Merchants blended cheap commodity wines from different locations to minimize quality fluctuations, but although retail prices remained remarkably stable during the phylloxera-induced period of shortages, this was achieved only by significantly reducing product quality. Poor wines and numerous press reports concerning their adulteration led to falling consumption. The failure of buyer-driven commodity chains such as the Victoria Wine Company or Gilbeys to significantly cut marketing costs implied that the small family retailer remained competitive, but neither could simultaneously cut prices and guarantee product quality for consumers.

scholarly journals Price Determination in the U.S. Shrimp Market

1987 ◽  
Vol 19 (2) ◽  
pp. 103-111 ◽  
Author(s):  
Charles M. Adams ◽  
Fred J. Prochaska ◽  
Thomas H. Spreen
Keyword(s):  
Retail Price ◽  
Economic Factors ◽  
Causal Relationships ◽  
Price Determination ◽  
Price Leadership ◽  
Size Classes ◽  
Marketing Costs ◽  
The U.S

AbstractThe monthly and quarterly price determination processes for 31–40 and 21–25 size classes of raw-headless shrimp were examined to determine price leadership between market levels. Causal relationships were assessed using Haugh-Pierce, Sims, and Granger methods. Price models at the retail, wholesale, and exvessel market levels were estimated. Economic factors analyzed were income, prices of competing products, landings and imports of raw headless shrimp, total retail supply, beginning stocks, and marketing costs.Monthly prices generally exhibited unidirectional causality from exvessel to retail price. Quarterly prices were determined interdependently among market levels. Price responses between market levels were found to be symmetric with beginning stocks, landings, and imports of own-size shrimp the most important determinants of price.

scholarly journals Beliefs and Consumer Search in a Vertical Industry

2019 ◽  
Vol 18 (5) ◽  
pp. 2359-2393 ◽  
Author(s):  
Maarten Janssen ◽  
Sandro Shelegia
Keyword(s):  
Low Cost ◽  
Search Costs ◽  
Retail Price ◽  
Consumer Search ◽  
Common Assumption ◽  
Vertical Relations ◽  
Retail Prices ◽  
The Common ◽  
Search Market ◽  
Pass Through

Abstract This paper studies vertical relations in a search market. As the wholesale arrangement between a manufacturer and its retailers is typically unobserved by consumers, their beliefs about who is to be blamed for a price deviation play a crucial role in determining wholesale and retail prices. The common assumption in the consumer search literature is that consumers exclusively blame an individual retailer for a price deviation. We show that in the vertical relations context, predictions based on this assumption are not robust in the sense that if consumers hold the upstream manufacturer at least partially responsible for the deviation, equilibrium predictions are qualitatively different. For robust beliefs, the vertical model can explain a variety of observations, such as retail price rigidity (or, alternatively, low cost pass-through), nonmonotonicity of retail prices in search costs, and (seemingly) collusive retail behavior. The model can be used to study a monopoly online platform that sells access to final consumers.

scholarly journals Commodity chain and strengthening of the agro-food sector competitiveness

2012 ◽  
Vol 48 (No, 7) ◽  
pp. 293-297
Author(s):  
I. Blažková
Keyword(s):  
Vertical Integration ◽  
Food Processing ◽  
Market Force ◽  
Food Chains ◽  
Commodity Chain ◽  
Food Sector ◽  
The Czech Republic ◽  
Potential Benefits ◽  
Vertical Interconnection ◽  
Production Characteristics

In the last decade, the character of agro-food chains functioning has changed significantly. Globalisation elements in the food processing and distribution are changing conditions in agro-food sector and influencing also agrarian markets. Due to higher food finalisation and market force of processing and distribution stages in the agribusiness commodity vertical, farm value share in the final food price has decreased. Increasing competition makes agribusiness firms  look for possibilities to strengthen their competitiveness, which is increasingly determined by the ability to develop successful partnerships within commodity verticals, i.e. vertical integration, eventually co-ordination, enforces. In this study, potential benefits and risks of these forms of vertical interconnection are reviewed with respect on specific market and production characteristics of agro-food chains. The problem is presented on the example of the commodity chain of bakery and pasta production in the Czech Republic. At the end of the paper, main arguments for the interconnection of particular stages of this vertical are derived, especially between mills and bakeries.

scholarly journals Retail price discrimination and food waste

2020 ◽  
Vol 47 (5) ◽  
pp. 1861-1896
Author(s):  
Timothy J Richards ◽  
Stephen F Hamilton
Keyword(s):  
Food Waste ◽  
Price Discrimination ◽  
Structural Model ◽  
Quality Standard ◽  
Retail Price ◽  
The Us ◽  
Retail Prices ◽  
Using Data ◽  
Retail Food ◽  
Minimum Quality

Abstract We examine a food retailer’s incentive to use a minimum quality standard as part of a quality-based price-discrimination strategy and show how price discrimination can result in a substantial level of retail food waste. Using data from a major US food retailer, we estimate a structural model of retail price discrimination and conduct a series of counter-factual experiments to demonstrate that observed retail prices are consistent with quality-based price discrimination in the retail market. Our findings indicate that quality standards on fresh produce can explain a substantial proportion ($7.5\%$) of food waste by retailers in the US.

Inflation, Cash Flows, and Growth: Some Implications for the Farm Firm

1980 ◽  
Vol 12 (2) ◽  
pp. 131-137 ◽  
Author(s):  
Lindon J. Robison ◽  
John R. Brake
Keyword(s):  
World War Ii ◽  
Cash Flows ◽  
World War ◽  
Farm Sector ◽  
Land Prices ◽  
Price Increases ◽  
Structural Impacts ◽  
Productivity Gains ◽  
Benefits And Costs

As farm sector prices continue to increase at rates higher than any since World War II, attention is being given to the cause of the price increases and their structural impacts on the farming sector. Land, a major component of farm assets, has been the focus of many studies examining the effects of inflation. Melichar showed current increases in land prices to be consistent with productivity gains. Lee and Rask illustrated that even though current levels of land prices may be justified, firms may have negative cash flows, especially if loans are repaid on level repayment plans. Current inflationary conditions led Robison to conclude that though current land prices may be justified, the benefits and costs are unequally distributed and that, increasingly, persons who in earlier years made land purchases are more able to afford to purchase more, thereby accelerating the trend toward fewer and larger farms.

scholarly journals Penerapan Algoritma K-Means Clustering untuk Pengelompokan Harga Eceran Beras di Pasar Tradisional Berdasarkan Wilayah Kota

2019 ◽  
Vol 1 ◽  
pp. 927
Author(s):  
Theresia Siburian ◽  
M. Safii ◽  
Iin Parlina
Keyword(s):  
Clustering Algorithm ◽  
Population Level ◽  
Retail Price ◽  
High Population ◽  
Traditional Markets ◽  
Strategic Value ◽  
Retail Prices ◽  
The Government ◽  
Almost All ◽  
Food Commodity

Rice is the main food commodity of the Indonesian people, almost all residents in this country consume rice every day. This causes rice commodities to have a very strategic value, apart from being in control of the lives of many people, it can also be used as a parameter of the country's economic and social stability. This study discusses the application of K-Means Clustering Algorithm for Grouping Retail Prices of Rice in Traditional Markets. The source of this research data is collected based on documents describing the retail price group of rice produced by the National Statistics Agency. The data used in this study are data from 2011-2016 consisting of 33 cities. Data is processed by clustering in 3 clusters, namely high population level clusters, medium and low population level clusters. Centroid data for high population level clusters 10,776, Centroid data for moderate population level clusters 9,436 and Centroid data for low population clusters 8,590. To obtain an assessment based on the grouping of the average retail price of rice in traditional markets in 33 cities with high clusters (C1) of 11 cities namely Padang, Pekanbaru, Tanjung Pinang, Bandar Lampung, Jakarta, Pontianak, Palangkaraya, Banjarmasin, Ternate, Jayapura and Manokwari for medium cluster (C2) as many as 11 cities and for low cluster (C3) as many as 11 cities. From the results of this study can be used as input for the government, especially in cities, so that cities that are included in the high cluster can normalize the retail price of rice in each city area.

scholarly journals Economic performance differentiation of the processing stage within the commodity chain

2010 ◽  
Vol 56 (No. 1) ◽  
pp. 16-24 ◽  
Author(s):  
I. Blažková
Keyword(s):  
Business Strategy ◽  
Market Development ◽  
Commodity Chain ◽  
Processing Stage ◽  
The Czech Republic ◽  
Business Partners ◽  
Second Stage ◽  
Food Market ◽  
Successful Business ◽  
Input Prices

The article is focused on the evaluation of economic differentiation of subjects on particular processing stages within the wheat commodity chain in the Czech Republic with regard to agro-food market development in the last years. The analysis is based on the statement that better economic results of businesses can be achieved not only by successful business strategy or quality management and employees but also by business ability to advance its own interests and to influence market conditions, such as setting higher prices, pressure on lower input prices, better position for negotiations with business partners etc. The Spider Analysis was used for evaluation. The results of analysis have proved worsening of economic position of the second stage of processing (bakeries) in comparison with the first stage of processing (mills) within the commodity chain in the last time, especially as a result of increasing market power of retail. It was also confirmed that decisive subjects in milling industry become bigger mills with joining to raw commodity supplier and subsequent processing stages.

scholarly journals Relationships between smoking duration, smoking intensity, hypothetical tobacco price increases, and smoking habit change intention among current smokers in Shanghai

2019 ◽  
Vol 47 (10) ◽  
pp. 5216-5228 ◽  
Author(s):  
Ruiping Wang ◽  
Yonggen Jiang ◽  
Xin Li ◽  
Qi Zhao ◽  
Meiying Zhu ◽  
...  
Keyword(s):  
Smoking Habit ◽  
Smoking Behavior ◽  
Cross Sectional Study ◽  
Retail Price ◽  
Price Increase ◽  
Chi Square ◽  
Cross Sectional ◽  
Smoking Intensity ◽  
Price Increases ◽  
Smoking Duration

Objectives We conducted a cross-sectional study to explore the effect of a hypothetical tobacco retail price increase on smoking habit change intention, and the role of smoking duration and intensity in smoking change intention. Methods In 2016 and 2017, we collected questionnaire data from 36,698 residents aged over 18 years in Songjiang district, Shanghai. Chi-square tests and weighted logistic regression were used for data analyses. Results The prevalence of current smoking was 19.78% (men: 48.36% and women: 0.22%). A total of 10.83% (men: 10.89% and women: 2.04%) and 9.39% of smokers (men: 9.42% and women: 6.12%) expressed the intention to smoke less or quit, respectively, given tobacco retail price increases. If the current tobacco retail price doubled, 75% of smokers stated that they would smoke less and 60% of smokers would consider quitting. Smokers with longer smoking duration and lower smoking intensity were more sensitive to tobacco price increases and more likely to change their smoking habits. Conclusions An increase in tobacco retail prices could induce some smokers to change their smoking behavior, particularly those with longer smoking duration and lower smoking intensity. A tobacco retail price increase is recommended, which should apply to all cigarette brands.

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