Do farm operators benefit from direct to consumer marketing strategies?

Timothy Park, Ashok Mishra, Shawn J. Wozniak

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

Using farm-level data this study investigates factors associated with the choice of three direct marketing strategies (DMSs). Particular attention is given to the role of management and marketing skills in selection of DMSs. Additionally, the study applies a selectivity-based approach for the multinomial logit model to assess the relationship between DMSs and the financial performance of the business. Results suggest that both management and marketing skills significantly affect direct-to-consumer sales. Farmers choosing the strategy of sales only through direct-to-consumer outlets report earnings that are significantly lower than earnings from the other marketing strategies. Marketing skills prove to be beneficial to direct-to-consumer (DTC) earnings. Finally, the selectivity correction terms in the direct sales model are significantly negative in the choice of DTC, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.

Original languageEnglish (US)
Pages (from-to)213-224
Number of pages12
JournalAgricultural Economics
Volume45
Issue number2
DOIs
StatePublished - 2014
Externally publishedYes

Fingerprint

farm operators
marketing strategies
direct marketing
sales
marketing
logit analysis
farmers
farms
Farm
Operator
Consumer marketing
Marketing strategy
Selectivity
Direct marketing
Marketing
sampling

Keywords

  • Direct marketing outlets
  • Farm sales
  • Multinomial logit
  • Selectivity correction

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

Do farm operators benefit from direct to consumer marketing strategies? / Park, Timothy; Mishra, Ashok; Wozniak, Shawn J.

In: Agricultural Economics, Vol. 45, No. 2, 2014, p. 213-224.

Research output: Contribution to journalArticle

Park, Timothy ; Mishra, Ashok ; Wozniak, Shawn J. / Do farm operators benefit from direct to consumer marketing strategies?. In: Agricultural Economics. 2014 ; Vol. 45, No. 2. pp. 213-224.
@article{179d7376b68a4c81806f92f974cd5cb4,
title = "Do farm operators benefit from direct to consumer marketing strategies?",
abstract = "Using farm-level data this study investigates factors associated with the choice of three direct marketing strategies (DMSs). Particular attention is given to the role of management and marketing skills in selection of DMSs. Additionally, the study applies a selectivity-based approach for the multinomial logit model to assess the relationship between DMSs and the financial performance of the business. Results suggest that both management and marketing skills significantly affect direct-to-consumer sales. Farmers choosing the strategy of sales only through direct-to-consumer outlets report earnings that are significantly lower than earnings from the other marketing strategies. Marketing skills prove to be beneficial to direct-to-consumer (DTC) earnings. Finally, the selectivity correction terms in the direct sales model are significantly negative in the choice of DTC, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.",
keywords = "Direct marketing outlets, Farm sales, Multinomial logit, Selectivity correction",
author = "Timothy Park and Ashok Mishra and Wozniak, {Shawn J.}",
year = "2014",
doi = "10.1111/agec.12042",
language = "English (US)",
volume = "45",
pages = "213--224",
journal = "Agricultural Economics (United Kingdom)",
issn = "0169-5150",
publisher = "Wiley-Blackwell",
number = "2",

}

TY - JOUR

T1 - Do farm operators benefit from direct to consumer marketing strategies?

AU - Park, Timothy

AU - Mishra, Ashok

AU - Wozniak, Shawn J.

PY - 2014

Y1 - 2014

N2 - Using farm-level data this study investigates factors associated with the choice of three direct marketing strategies (DMSs). Particular attention is given to the role of management and marketing skills in selection of DMSs. Additionally, the study applies a selectivity-based approach for the multinomial logit model to assess the relationship between DMSs and the financial performance of the business. Results suggest that both management and marketing skills significantly affect direct-to-consumer sales. Farmers choosing the strategy of sales only through direct-to-consumer outlets report earnings that are significantly lower than earnings from the other marketing strategies. Marketing skills prove to be beneficial to direct-to-consumer (DTC) earnings. Finally, the selectivity correction terms in the direct sales model are significantly negative in the choice of DTC, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.

AB - Using farm-level data this study investigates factors associated with the choice of three direct marketing strategies (DMSs). Particular attention is given to the role of management and marketing skills in selection of DMSs. Additionally, the study applies a selectivity-based approach for the multinomial logit model to assess the relationship between DMSs and the financial performance of the business. Results suggest that both management and marketing skills significantly affect direct-to-consumer sales. Farmers choosing the strategy of sales only through direct-to-consumer outlets report earnings that are significantly lower than earnings from the other marketing strategies. Marketing skills prove to be beneficial to direct-to-consumer (DTC) earnings. Finally, the selectivity correction terms in the direct sales model are significantly negative in the choice of DTC, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.

KW - Direct marketing outlets

KW - Farm sales

KW - Multinomial logit

KW - Selectivity correction

UR - http://www.scopus.com/inward/record.url?scp=84895534588&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84895534588&partnerID=8YFLogxK

U2 - 10.1111/agec.12042

DO - 10.1111/agec.12042

M3 - Article

AN - SCOPUS:84895534588

VL - 45

SP - 213

EP - 224

JO - Agricultural Economics (United Kingdom)

JF - Agricultural Economics (United Kingdom)

SN - 0169-5150

IS - 2

ER -