Pricing dynamics in US fresh produce channels: new empirical evidence |
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Authors: | George K Criner Alan S Kezis Edward W McLaughlin |
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Institution: | Resource Economics and Policy Department, 5782 Winslow Hall, University of Maine, Orono, ME 04469-5782, USA;Food Industry Management Program, Cornell University, 113 Warren Hall, Ithaca, NY 14853 USA |
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Abstract: | Despite many valuable contributions, prior research has not completely explained retail pricing behavior. This study employs scanner data for 36 fresh produce items analyzing the relationship between costs of goods sold and retail prices to provide further insight into retail pricing behavior. Implications include: (1) where ‘natural’ variation in produce prices do not already exist from the supplier, retailers appear to introduce the variation themselves, independent from shipping point price; and (2) to the extent that supplier-retailer contracts for fresh produce develop, the resulting stabilizing influence on costs may have the preserve effect of increasing retail price variability to consumers. |
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Keywords: | food retailing price behavior fresh produce marketing channel |
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