Search results

The purpose of this paper is to study the usage and influence of food labels by the young consumers of an emerging market where food labeling regulation is comparatively recent phenomenon.

A purposely developed questionnaire was administered to 300 randomly selected youths of age between 18 and 30 years. The first part of the questionnaire sought information on socio-demographic profile, whereas the second part of the questionnaire had questions related to consumers’ perception of importance, their reading behavior, and their responses on the information content of food labels. Appropriate statistical tools were used to analyze the data.

Results revealed that young Indian consumers attached considerable importance to the food labels and read it before making a final purchase decision. In addition to price, all the product attributes which had implications for the consumers’ health were considered as extremely important by the young consumers. Information regarding different important product attributes can be broadly clubbed in two categories, namely, “product specification” and “product quality.” The final decision to purchase a product based on the food labels varied significantly based on the consumers’ gender, age, food habit, and residential locality.

Nature of study does not allow drawing a conclusion regarding the causal relationship between food labels and consumers’ purchase decisions.

As labeling regulation is a comparatively recent phenomenon in India, study of the usage and influence of food labels on young consumers’ purchase decision, a hitherto not much-studied subject, will contribute significantly to the literature on food labels.

Although Agtech firms have promoted digital platforms for retailing farm supplies (RFS), farmers are sceptical while purchasing them online. As a result, they struggle to generate a sustained demand. Among other approaches, these platforms onboard complementors to become full-stack farming solution providers. Whether platform complementarity can induce farmers' trust remains ambiguous. Literature on network externality theory highlights that complementarity positively affects the perceived value for buyers. The sociotechnical systems literature indicates that perceived value is an antecedent of user trust. In this vein, the authors ask: Does perceived complementarity affect farmers' trust in the RFS platform? Alternatively, the Agtech firms augment the platform's look and feel to make the digital retail setting appear “normal” to farmers. The extant research on the social cognitive theory indicates that a retail setting conforming with the generalised expectancy of buyers harbours their trust. Against this backdrop, the authors ask whether situational normality affects farmers' trust in the RFS platform.

The study is based on a questionnaire survey of 212 Indian farmers using RFS platforms. The data were analysed using structural equation modelling (SEM) analysis.

This study establishes that platforms' complementarity and situational normality ameliorate farmer trust. The authors also identify the socioeconomic factors shaping the farmers' trust in platforms.

The present study has taken all RFS together as a single umbrella category, which can be considered a limitation. Also, the study is based on the cross-sectional survey of RFS platform users; the farmers' attitudes are dynamic in nature and evolve over time; however, the temporal factors shaping the farmer attitudes have not been considered in this study.

The study establishes the epistemological relationship between complementarity, situational normality and farmers' trust in agricultural platforms.

Doubling farming households’ income through occupational diversification to the non-farm sector has been advocated to be of paramount importance in an agrarian economy such as India. The purpose of this paper is to analyse the effects of non-farm activities on rural household incomes in four different Indian states by using a propensity score matching technique and developing an endogenous switching model.

The research is based on secondary data taken from four quinquennial rounds of employment and unemployment surveys conducted by the National Sample Survey Organization.

The matching results indicate a maximum monthly rise in per capita income of Rs. 60 in Gujarat and a minimum increase of Rs. 18 in Rajasthan among rural households employed in the non-farm sector as compared to the farm sector. The findings confirm that rural non-farm structural diversification cannot be viewed as a blueprint for increasing rural household incomes in different states. Further, it suggests the need to segmenting the different states on the basis of agricultural development for increasing rural incomes.

The study argues that Indian states with a strongly developed farm sector i.e. Gujarat and Punjab are not ideally suited to undergo structural changes in their economic pursuit. The estimates suggest that the transition of rural households from farm to non-farm-sector activities is a very weak strategy in agriculturally developed states of Gujarat and Punjab, whereas non-farm diversification becomes a pivotal strategy for increasing rural household incomes in less agriculturally developed states such as Rajasthan and Uttar Pradesh. A contrasting point that arises from these evidence is that although diversification to the non-farm sector leads to higher income, but the resultant figures are very scanty.

The present study contributes to the existing literature by providing evidence and policy implications on rural non-farm diversification in India and its impact on the rural household income. The study can help the policymakers in framing policies aiming at increasing the income of the rural household through the structural transition of the rural economy.

Understanding of the farmers’ buying process is of great economic and strategic relevance for agri-business firms. The purpose of this paper is to explain the extensiveness of the buying process of Indian farmers in their purchase of agri-inputs and discusses its implications for agri-industries.

Four different dimensions of the buying process, namely, buying decision time, number of information sources used, number of evaluated suppliers, and number of conversations with suppliers were used to study the extensiveness of the buying process of the farmers. Responses of 278 farmers were analyzed with the help of mean and frequency distribution, analysis of variance, and Pearson correlation coefficient.

Overall, the extensiveness of the buying process for the frequently purchased inputs was less in comparison to that of the infrequently purchased inputs. However, there were differences in the extensiveness of the buying process for the inputs within the same category. Farmers’ characteristics influenced their buying process and the impact was more evident in case of frequently purchased agri-inputs. All the four dimensions of the farmers’ buying process were found to be positively correlated for most of the agri-inputs.

The farmers’ buying process varies for different agri-inputs and is dependent on the farmers’ characteristics. Firms can use the findings of the study to develop appropriate marketing strategies to broaden their customers’ base and increase sales.

The paper offers an insight into the farmers’ buying process in India and how the farmers behave in different dimensions of the buying process. There are very few studies on the subject carried out in the Indian context.

Although growing Internet penetration in the hinterlands has attracted agribusinesses to promote digital platforms, farmers are sceptical about using them. The literature discusses agricultural platforms from the theoretical perspective of technological determinism, where the platforms are developed and promoted by firms in a top-down manner to be accepted by farmers. However, this approach results in poorly configured platforms with limited utility for farmers. It is evident from the existing literature that the mere creation of a platform business is not sufficient to guarantee adoption by users. Hence, this study explores how to make the agricultural platform more attractive for farmers.

The present study is based on a discrete choice experiment performed on 126 Indian farmers using agricultural platforms. The data were analysed using the conditional logistic regression method.

The study suggests that farmers expect government and cooperative entities to be also embedded with the platforms. Complementary features such as prompt service, competitive pricing and farm credit were identified as essential attributes. Further, the platforms should enable smallholders to trade farm produce by providing a mechanism for real-time online nudging and bargaining with buyers.

The study is based on the applications of random utility theory. The research has utility for Agtech managers, cooperative institutions and agricultural policymakers.

This is one of the first studies focussing on agricultural platform design from the farmers' perspective. The study implies that incorporating preferred attributes can help practitioners configure platforms to benefit farmers with prospects concerning farm management decisions.

The issue of transaction cost (TC) has always been the concern of both researchers and policymakers in microfinance. This paper aims to measure the TC of borrowers across various microfinance business models in India.

To identify sources of the TC of the clients in the entire process of borrowing loan, the technique of process mapping has been used in this study. Using the data collected from randomly selected 700 clients under different microfinance models, the study has computed the different components of clients’ TC.

The results show that although SHG-Bank linkage model has more robust organizational design, its sluggish operational modalities has resulted in a higher client TC as compared to that in MFI lending model. The indirect TC (in terms of clients’ opportunity cost of time) occupies major share in clients’ TC, and strategies are required by MFIs/banks to reduce it substantially by using the appropriate technology.

The client TC can become one of the important factor to evaluate efficiency of the different models of microfinance. Policymakers can use the findings to reduce the clients’ TC by benchmarking best practices across all the microfinance business models.

The research paper offers an insight into different components of clients’ TC across different models of microfinance. So far, not much research has been carried out on the subject in Indian context.

The purpose of this paper is to identify and compare the factors which affect the consumers’ buying behavior of vegetarian and non-vegetarian food products in an emerging middle-size market. The paper also compares the preferences of the consumers for various food products and their respective market attributes.

A total of 282 households of two middle-sized cities of India were personally surveyed with a structured questionnaire. Simple statistical analysis such as frequency distribution, factor analysis and analysis of variance, and logit regression were carried out to infer the required information.

The results indicate that consumers consume more of vegetarian product than that of non-vegetarian products. Most of the consumers were interested in seeing and verifying the products of both of the categories before buying. Age and income of the consumers play important role in influencing their buying behavior for vegetarian food products, but not that of non-vegetarian food products. It was found that credence attributes of products, and market attributes play a dominant role in influencing the consumers’ behavior for both vegetarian and non-vegetarian food products. Packaged branded products were not popular in both the food categories.

The localized nature of this study limits the scope of wider generalization. Future research could use larger samples spread across all regions having different food culture.

The findings of the study will be of help to food retailers who are interested to know whether the consumers’ buying process for these two categories of food products is more or less same or different in nature. This would help them to customize their product-specific marketing strategies as per the customers’ preferences and requirements.

The paper gives a comparative insight on consumers’ behavior toward both vegetarian and non-vegetarian food. It provides specific reasons for having different or similar marketing strategies for two categories of food.

Marketing.

This case may be used by instructors to teach undergraduate, post graduate and executive level programmes in management. It may be used in basic marketing, branding or marketing strategy courses. The case may serve as a platform for the instructor to discuss the concepts and issues related to positioning and repositioning.

Tata Chemicals, a subsidiary of the Tata group, launched the “i-Shakti” brand six years ago for its low-cost “solar-evaporated” salt for rural customers. In 2010, the company extended the brand equity of i-Shakti to a premium segment and launched a new brand “Tata i-Shakti” with a range of unpolished pulses. Changing the brand name and customer base from “i-Shakti for rural market” to “Tata i-Shakti for premium market” created a dilemma among customers in the market. To overcome this problem, in October 2015, the company’s portfolio of pulses, gram flour and food grade soda under “Tata i-Shakti” label has migrated into a new brand “Tata Sampann”. The company also launched a range of spices under the brand name of “Tata Sampann”. This new brand “Tata Sampann” was launched to serve the premium segment with an aim to “enrich everyday meals with extra nutrition and extra joy”. Also, this brand recreation was made by the company with anticipation to make avenues for future launches in the staples and food segment under Tata’s consumer products business. It has been almost a year since Tata Sampann was launched in the market. Given the tough competition and expected growth of the spices market in India, it remained to be seen whether “Tata i-Shakti” was rightly rebranded or repositioned with “Tata Sampann”.

To make participants understand the basic concepts of branding such as umbrella branding, brand repositioning and rebranding. To make participants learn about various brand elements and how they contribute in communicating the value proposition of the brand. To make participants appreciate various marketing and brand related strategies.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 8: Marketing.

The purpose of this paper is to understand non-vegetarian food consumption behavior, and factors affecting the same of the consumers of middle-sized market, where organized retailing is still at infancy.

A total of 182 households of two middle-sized cities of India were personally surveyed with a structured questionnaire. Simple statistical analysis such as frequency distribution, factor analysis and analysis of variance, logit regression were carried out to infer the required information.

Although an important constituent of the food, for most the consumers, purchase of non-vegetarian products were weekly, well planned, and family affairs. Assured good quality, followed by the meat preparation in front of the customers’ eye emerged important market attributes for selecting the store by the consumers. The study revealed that consumers were mainly dependent on search and credence attributes of the product for non-vegetarian food purchase decisions.

This paper analyses non-vegetarian food consumption food behavior of those customers, for whom non-vegetarian food is still considered as special food, and who belong to middle-sized cities where organized food retailing has just started.

The subject is relatively less researched in emerging markets where organized food retail is still at infancy, and where non-vegetarian foods are considered special.

The purpose of this paper is to develop a marketing strategy for a modern food/grocery market based on consumer preferences and behaviour.

A total of 101 households having sufficient purchasing power were personally surveyed with a structured questionnaire. These households are spread across the well‐developed Gomtinagar area of Lucknow city. Simple statistical analysis such as descriptive statistical analysis, frequency distribution, cross tabulation, analysis of variance, and factor analysis to assess the consumers' preferences for food and grocery products and market attributes were carried out.

The preferences of the consumers clearly indicate their priority for cleanliness/freshness of food products followed by price, quality, variety, packaging, and non‐seasonal availability. The consumers' preference of marketplace largely depends on the convenience in purchasing at the marketplace along with the availability of additional services, attraction for children, basic amenities and affordability. Results suggest that most of the food and grocery items are purchased in loose form from the nearby outlets. Fruits and vegetables are mostly purchased daily or twice a week due to their perishable nature, whereas grocery items are less frequently purchased.

This paper analyses the buying behaviour of the consumers under survey with respect to food and grocery items. These consumers are in a relatively advantageous position in terms of purchasing power and awareness of health and nutrition.

The results may help the food processors and outlet owners to understand a diversified set of preferences for products and market attributes, so that they can make better decisions in the emerging organized food and grocery retail environment.

The topic is relatively less researched in emerging markets especially where organized retail is still in its early stages.