We examine the interaction of marketing channel members and the influence of these interactions on incentives, coordination costs, and risk allocation strategies in a food marketing channel. For this purpose we specify a three-stage principal-agent marketing channel model involving producers,...

Food-supply chains have become extensively vertically coordinated through the use of contracts as an organizational response to satisfy the needs of consumers in the saturated food markets of the industrialized countries. The contracts involved must establish an optimal trade-off between...

A new test of asymmetric price adjustment is proposed on the basis of the super-consistent cointegrating vector estimator in the Johansen (1995) cointegrating procedure. The super-consistency makes the test robust to misspecifications in the short-run model. Application of the test to the price...

We apply the classic agency model to investigate risk shifting in an agricultural marketing channel, using time series analysis. We show that if the principal is risk-neutral and the agent is risk-averse instead of risk-neutral, then a linear contract can still be optimal if the fixed payment is...

This study analyzes the marketing costs of a pineapple producing and export firm (Bomart Farms) in Ghana. Con­ sistent with the existing literature, we categorize marketing costs into assembling, processing, and distribution costs. The assembling cost comprises of cost of crating and loading...

A test procedure is proposed to test for the simultaneous nature of the relationship between price and quantity with respect to consumer demand of fresh products at the level of an individual retail chain. It is argued in the literature that, on the sector level, inverse demand systems in which...

Here we detail a method to test whether or not retailers allow suppliers to set the wholesale price not only on the basis of the costs faced by the suppliers but also on the basis of consumer demand. Using standard theory, long-run price relationships between the stages in the channel are...

Performance expectations influence business decisions such as investment decisions and demand for supplies, particularly in small firms with limited strategic planning. Despite widespread use of performance expectations by firms and governments when making sales forecasts and economic outlooks,...

This study proposes a model to explain the intention of farmers to adopt a radical product innovation. Particular attention is given to the influence of marketing factors. Results from illustrating the model for Dutch poultry farms are presented.