Marketing Channel Choice and Marketing Efficiency Assessment in Agribusiness

Abstract

In agribusiness, profitability critically depends on the choice of proper marketing channels. This article studies the factors influencing marketing channel choices of vegetable farmers. Vegetable farmers have generally 3 choices to sell their produce, which are formal and informal market participation vis-à-vis nonmarket participation. Ten independent variables are considered for the study and a multinomial logistic regression model is used for the analysis. The study finds 4 major variables that can influence farmers’ decision to shift from nonmarket participation to informal or formal market participation. The article further identifies 4 microlevel marketing channels and assesses their efficiency.

KEYWORDS:

• institutional factor
• marketing channel
• marketing efficiency
• multinomial logistic regression
• technical factor

Notes

*Statistically significant at 5% significance level.

Note. Figures within parentheses indicate percentage of total. WS/CA = Wholesaler cum Commission agent.

Note. Figures within parentheses indicate amount in Rupees/quintal.

Note. Figures within parentheses indicate amount in Rupees/quintal.

Note. Figures within parentheses indicate amount in Rupees/quintal.

Note. Figures within parentheses indicate amount in Rupees/quintal.

Note. Rs/q = Rupees/quintal.

Additional information

Notes on contributors

Rajeev Kumar Panda

Rajeev Kumar Panda has a doctorate in management and is an Assistant Professor at the National Institute of Technology, Rourkela, India. His areas of interest include rural marketing, brand management, and service marketing. He has 7 years of teaching experience in the area of marketing science. He has published 5 research papers in various international and national conferences and journals. He has also edited a book, Marketing in Emerging Markets (Excel Publishers, 2009). He is invited to many business schools in India for guest classes.

Sreekumar

Sreekumar has a doctorate in management and is an Associate Professor at Rourkela Institute of Management Studies, Rourkela, India. His areas of interest include application of data envelopment analysis, multicriteria decision making, and decision making in fuzzy environments. He has 19 years of teaching experience in the areas of decision and information science. He has published more than 35 research papers in various international and national conferences and journals. He has also authored two textbooks. He is the reviewer of several international journals. In addition, he is a Visiting Faculty member of many business schools in India.