E-Commerce and Sales Management in Agribusiness

Der Digitalisierungstrend verändert die Prozesse im Agrarsektor und betrifft alle Akteure in der landwirtschaftlichen Wertschöpfungskette gleichermaßen. Insbesondere die digitale Entwicklung des Agrarhandels wird derzeit von einer Vielzahl unterschiedlicher Anbieter mit Hochdruck vorangetrieben. Dabei sind Fragen nach dem veränderten Einkaufsverhalten seitens der Landwirtschaft und den Auswirkungen für die Agrarhandelsstrukturen derzeit so präsent wie nie. Die vorliegende Dissertation befasst sich daher mit der Rolle des E-Commerce und des Vertriebsmanagements, innerhalb der landwirtschaftlichen Vorleistungsindustrie als einen bedeutenden Teil des Agribusiness. Neben Online-Vertriebskanälen wird in dieser Arbeit auch der persönliche Verkauf, als ein Offline-Vertriebskanal untersucht. Die hier präsentierten Artikel legen dar, dass der E-Commerce als Beschaffungskanal für landwirtschaftliche Betriebsmittel nur unterschiedlich gut angenommen wird und dass der regelmäßige Online-Einkauf nur auf bestimmte, sehr standardisierte Betriebsmittel beschränkt ist. Ein grundsätzliches Interesse der Landwirtschaft am Onlinehandel von Betriebsmitteln ist jedoch gegeben, und lässt darauf schließen, dass der E-Commerce in der Landwirtschaft ein großes, bisher ungenutztes Potential besitzt. Der Online-Einkauf wird am stärksten von den wahrgenommenen Vorteilen des elektronischen Handels beeinflusst, die jedoch von LandwirtIn zu LandwirtIn sehr unterschiedlich bewertet werden. Andererseits wirken sich Misstrauen gegenüber dem Onlinehandel sowie Beziehungen und Loyalität zum lokalen Handel negativ auf die Nutzung des E-Commerce innerhalb der Landwirtschaft aus. Die Ergebnisse verdeutlichen, dass es unterschiedliche Gruppen von Landwirten gibt, die sich hinsichtlich ihrer Einstellung zum E-Commerce und den Verhaltensweisen beim Betriebsmittelkauf unterscheiden. So scheint ein signifikanter Teil der landwirtschaftlichen KundInnen mental nicht auf den Onlinehandel vorbereitet zu sein, während ein anderer Teil bereits besonders aufgeschlossen gegenüber digitalen Vertriebskanälen ist. Die Einstellung der LandwirtInnen zum E-Commerce wird dabei, wie klassischerweise im B2B, stark von kognitiven Faktoren beeinflusst, wobei jedoch affektive Komponenten nicht vernachlässigt werden sollten. Dementsprechend sind Unternehmen der landwirtschaftlichen Vorleistungsindustrie aufgefordert, ihre Vertriebs- und Marketingstrategien auf die Bedürfnisse der individuellen Kundengruppen abzustimmen. Auch wenn sich der stationäre Handel, insbesondere aufgrund persönlicher Kontaktmöglichkeiten, in der hier aufgezeigten Forschung als Benchmark des E-Commerce herauskristallisiert hat, sollten die Unternehmen ihre Geschäftsmodelle anpassen und digitale Vertriebskanäle im Rahmen einer Multi- bis Omnichannel Strategie integrieren, um ihre digitalen KundInnen von Morgen zufriedenstellend bedienen zu können. Aus Unternehmenssicht wirken jedoch Produkteigenschaften und traditionell persönliche Sektor- und Unternehmensstrukturen sowie fehlende finanzielle Mittel und Humankapital oft als Digitalisierungsbremse. Vor allem der landwirtschaftliche Außendienst ist hierbei sowohl von dem Strukturwandel als auch von der digitalen Transformation betroffen und steht unter einem enormen Anpassungsdruck. Seitens der Landwirtschaft wird der Außendienst insgesamt nur mit befriedigend bewertet. Dabei zeigt sich, dass Fachkompetenz allein nicht ausreicht, um auf den landwirtschaftlichen Betrieben zu überzeugen. Vielmehr ist es die Persönlichkeit und die Sozialkompetenz der Außendienstmitarbeitenden, die zu deren langfristiger Reputation bei den KundInnen beitragen. Die Ergebnisse verdeutlichen, dass es dem Außendienst oft an Kundenzentriertheit mangelt, welche es zu optimieren gilt. Dies könnte dadurch geschehen, dass bereits bei der Einstellung von neuem Vertriebspersonal ein stärkerer Fokus auf die verkaufsorientierte Persönlichkeit und soziale Kompetenz der BewerberInnen gelegt wird. Doch gerade die Akquisition neuer Fachkräfte für den Vertrieb gestaltet sich als schwierig. So zeigen die Ergebnisse der Dissertation, dass eine Position im Vertrieb nur eine mäßige Beliebtheit bei Studierenden der Agrarwissenschaften erfährt. Ebenso wird das Thema Vertrieb im agrarwissenschaftlichen Studium nur wenig zufriedenstellend behandelt. Das dem Vertrieb negativ anhaftende „Hard-Selling“ Image schreckt viele Absolvierende ab. Die Attraktivität einer Vertriebsposition für Studierende der Agrarwissenschaften, kann durch das Aufzeigen von Karriereoptionen sowie der Schaffung von Berührungspunkten mit dem Vertrieb gesteigert werden. Es besteht also noch Handlungsbedarf sowohl auf Berufsschul- bzw. Universitätsseite als auch auf Unternehmensseite, um landwirtschaftliche Auszubildende für eine Tätigkeit im Verkauf zu motivieren. Neben der digitalen Transformation und dem Strukturwandel in der Landwirtschaft übt die überwiegend negative bzw. kritische Haltung der Gesellschaft gegenüber der Landwirtschaft zusätzlichen Druck auf die ohnehin schon angespannte Vorleistungsindustrie aus. Ein strategisches Kommunikationsmanagement der Vorleistungsunternehmen, insbesondere der Vertriebs,- und Marketingdepartements, ist daher entscheidend, um die Kundenzentrierung zu optimieren, aber auch damit öffentliche Anliegen frühzeitig aufgegriffen und bearbeitet werden. Die vorliegende Dissertation lässt erkennen, dass das Thema E-Commerce und Vertriebsmanagement im Agribusiness, insbesondere in der landwirtschaftlichen Vorleistungsindustrie, sowohl für die Forschung als auch für den gesamten Agrarsektor ein hochspannendes Thema bleibt, in dem in den nächsten Jahren strukturprägende Veränderungen zu erwarten sind.The digitization trend is changing processes in the agricultural sector and affects all players in the agricultural value chain equally. At present, especially the digital development of agricultural trade is being driven forward at full speed by a wide range of providers. In this context, questions about changes of the agricultural purchasing behavior and the implications for agricultural trade structures are currently much in the spotlight. This dissertation therefore considers the role of e-commerce and sales management within the agricultural input industry as a significant part of agribusiness. In addition to online the sales channel, personal selling, as an offline sales channel, is also examined. The articles presented here demonstrate that e-commerce as a procurement channel for agricultural inputs is well-accepted overall but to different degrees, and that regular online purchasing is limited to only certain, well-standardized, inputs. A fundamental interest of the agricultural sector in e-commerce can be confirmed and suggests that e-commerce in agriculture enjoys significant potential which has not yet been utilized. Online purchasing is strongly influenced by the perceived benefits associated with e-commerce, which, however, vary significantly among farmers. On the other hand, distrust of online commerce as well as relationships and loyalty to local retailers have a negative effect on farmers' e-commerce adoption. The results also illustrate that there are different groups of farmers, who differ in terms of their e-commerce attitudes and shopping behaviors. A significant portion of agricultural customers appears to be mentally not ready for online retailing, while another part is already particularly open-minded towards digital distribution channels. As common in B2B, farmers' attitudes toward e-commerce are strongly influenced by cognitive factors, although affective components should not be dismissed, either. Accordingly, companies in the agricultural input industry are called upon to tailor their sales and marketing strategies to the needs of their individual customer groups. Even though stationary trade has emerged as the benchmark of e-commerce within this dissertation, particularly due to personal contact opportunities, companies should adapt their business models and integrate digital sales channels as part of a multi-, to omnichannel strategy in order to be able to satisfactorily serve their digital customers of tomorrow. However, from the company's point of view, factors such as product characteristics and traditionally personal sector and company structures as well as a lack of financial resources and human capital act as digitalization brakes. The agricultural sales force in particular is affected by both structural change and digital transformation and is under enormous pressure to adapt. Overall, farmers rate the performance of the agricultural sales force as only satisfactory. Professional competence alone is not enough to convince farmers. Rather, it is the personality and social competence of the sales force that contributes to their long-term reputation with the customer. The results demonstrate that the agricultural sales force often lacks customer centricity, which needs to be optimized. This might be done by placing a stronger focus on the sales-oriented personality and social skills of new sales employees as early as the recruitment stage. However, it is precisely the acquisition of new sales specialists that is proving difficult. For example, a position in sales enjoys only moderate popularity among students of agricultural sciences. Likewise, the subject of sales is not dealt with satisfactorily in agricultural studies. The "hard-selling" image negatively attached to sales deters many graduates. The attractiveness of a sales position for students of agricultural sciences can be increased by pointing out career options and creating options to get in contact with sales. Thus, there is still a need for action both at the vocational school or university side and on the company side to motivate agricultural trainees to work in sales. In addition to the digital transformation and structural change in agriculture, society's predominantly negative or critical attitude toward agriculture is exerting additional pressure on the already strained agricultural input industry. Strategic communications management of input companies, especially of their sales and marketing departments, is therefore crucial not only to optimize customer centricity, but also to ensure that public concerns are taken seriously and addressed thematically. This dissertation suggests that the topic of e-commerce and sales management in agribusiness, especially in the agricultural input industry, remains a highly exciting topic both for research and for the agricultural sector as a whole, in which further structural changes can be expected in the coming years.2022-01-1

THE SITUATION AND TENDENCY OF IT APPLICATION IN SOUTH EAST EUROPEAN COUNTRIES

Modern business trends in agriculture include increasing the productivity and efficiency of agricultural production in order to achieve a competitive position in the market. The growth of the population imposes an increasing need for agricultural food products, accessibility of products and the necessity of preserving the environment. In order to ensure the long-term sustainability of the agricultural sector in a dynamic environment, it is necessary to make timely business decisions. The use of information technologies in agricultural farms, primarily computers and the Internet, enables agricultural producers access to a large amount of information. The aim of this paper is to examine the current level of IT usage in the markets of the countries of South East Europe, with an emphasis on the agricultural sector, as well as to analyze future trends in the development of modern technologies. The paper uses the data of the Statistical Office of the Republic of Serbia and the EUROSTAT database. The survey covers the period 2009-2018, which analyzes the frequency of using computers, the Internet and e-commerce

Consumer Preferences for Environmentally Friendly Disposable Dinnerware Alternatives

In the context of growing concern surrounding the environmental impact of single-use paper and plastic waste, demand for alternatives to conventional disposables has recently increased. This study investigates factors driving consumer preferences for ecofriendly attributes in disposable dinnerware. The study subsequently measures willingness to pay for such an alternative; specifically, dinnerware molded from wheat straw. Data was collected from an online survey of 206 Tennessee consumers aged 18 and older who consider themselves to be the primary household food shopper. The first part of this investigation uses a Multiple Indicator Multiple Causes (MIMIC) model to estimate the effects of demographics, expenditures, and attitudes on propensity to prefer ecofriendly attributes in disposable dinnerware. The eight disposable dinnerware attributes examined include: compostable, recyclable, uses no trees, contains no plastic, USDA certified bio-based, made from an agricultural crop byproduct, made from cellulose from dedicated crops, and/or made from organically sourced cellulose. The ‘no plastic’ and ‘recyclable’ attributes were found to have the broadest appeal among consumers, while the ‘no trees’ and ‘USDA certified bio-based’ attributes had a narrower appeal and were most valued by consumers with the strongest propensities to prefer ecofriendly attributes. The second part of this investigation measured consumer willingness to pay for disposable dinnerware molded from wheat straw, which is a byproduct of the wheat industry. A choice set was used in the survey data to elicit consumer purchasing decisions, and compared a 25-count package of wheat straw bowls to a 25-count package of conventional paper bowls. Overall, consumers were found to be willing to pay a premium of $1.33 for the wheat straw bowls. The target market estimated to most likely select the bowls molded from wheat straw is: consumers who spend more on disposable dinnerware, have previously purchased alternative fiber products, and feel a responsibility to address greenhouse gas emissions and climate change. These findings provide the industry for disposable dinnerware with marketing information that may encourage them to increase offerings of dinnerware with attributes perceived to be ecofriendly. Additionally, manufacturers may use production materials that would have been otherwise burned or disposed of in a landfill

The Digitalisation of African Agriculture Report 2018-2019

An inclusive, digitally-enabled agricultural transformation could help achieve meaningful livelihood improvements for Africa’s smallholder farmers and pastoralists. It could drive greater engagement in agriculture from women and youth and create employment opportunities along the value chain. At CTA we staked a claim on this power of digitalisation to more systematically transform agriculture early on. Digitalisation, focusing on not individual ICTs but the application of these technologies to entire value chains, is a theme that cuts across all of our work. In youth entrepreneurship, we are fostering a new breed of young ICT ‘agripreneurs’. In climate-smart agriculture multiple projects provide information that can help towards building resilience for smallholder farmers. And in women empowerment we are supporting digital platforms to drive greater inclusion for women entrepreneurs in agricultural value chains

EVALUATING AGRICULTURAL RESEARCH AND PRODUCTIVITY IN AN ERA OF RESOURCE SCARCITY

Proceedings of a Symposium Sponsored by NC-208, "Impact Analysis and Decision Strategies for Agricultural Research" held at Orlando, Florida, March 4, 1993. Contents: The Federal Context for Funding Agricultural Research, by Daryl Chubin Agricultural Research Structures in a Changing World, by Brian Wright and David Zilberman Priority Setting in a State Agricultural Experiment Station: Shifting Paradigms, by Bill R. Baumgardt Structure, Management and Funding of Agricultural Research in the United States: Current Directions and Likely Impact, by Wallace Huffman and Richard Just Impact of Changing Intellectual Property Rights on U.S. Plant Breeding R&D, by Carl E. Pray, Mary Knudson and Leonard Masse A New Look at State-Level Productivity Growth in U.S. Agriculture, by Philip G. Pardey, Barbara J. Craig and Klaus Deininger Measuring Agricultural Productivity in U.S. Agriculture, by V. Eldon BallProductivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Measuring Consumer Acceptance and Willingness-To-Pay for Specialty Tomatoes: Impact of Product, Taste, and Health Features

The increasing public health awareness and the promotion given to healthy eating habits as a measure to prevent obesity and chronic diseases have pushed consumer’s attention towards differentiated products. Many of the differentiated products, such as those with environmental, local, and other health and quality claims, are categorized as credence goods. Credence attributes, such as nutritional characteristics, are unobserved by consumers even after consumption, making the use of information crucial for marketing the benefits of such products. While there have been numerous studies examining the potential impacts of these attributes on consumer demand, few studies combine consumer valuation of credence attributes with sensory analysis of products and information treatments. This study attempts to shed more light on this area by considering both the impact of various attributes on consumer demand and the consistency in consumer valuation under different information treatments. The information treatments refer to tasting, health information, and the location of origin and production system of the products. A non-hypothetical second-price Vickrey auction was conducted in the Bryan-College Station area of Texas in order to collect the data. Several econometric models were developed to estimate consumers’ willingness-to-pay (WTP); however, special attention was paid to the random parameters tobit model as it accounts for unobserved individual heterogeneity as well as bid-censoring. Results show that knowledge of location of origin of tomatoes does have an impact on consumer valuation. The same holds true for the taste attribute (experience) and the health attribute (credence). Each information treatment was applied to several products and some treatments had contradictory results between products which prevented generalizing the effects of that treatment. In addition, estimates indicate there exists unobserved heterogeneity in valuations across individuals. Finally, using a Latent Class Analysis, consumers were segmented based on health-related behaviors, and the differences in the valuation of products and information treatments among those classes were measured using random parameters tobit models. Two latent classes were found and characterized as: “Health Conscious”, and “Health Redeemers”. The findings indicate that the classes differed significantly in terms of their preferences, willingness to pay, socio-economic profile, and health-driven motivations

Studies in Consumption and Production of South Carolina Aquaculture Products

Market demand for seafood products among South Carolina (SC) consumers has led to increased aquaculture production as a means of supporting the seafood supply chain across the state. Our objective is broken into four distinct parts; (1) understanding consumer’s preferences and perceptions of seafood, (2) calculating their willingness to pay (WTP) for seafood products available in SC using attributes of sustainability and locality; and (3) gathering production metric and anecdotal data from SC oyster growers. Previous research assessing the market channels of seafood in South Carolina is compared to survey results. Respondents indicated that taste and quality were the most important factors considered when purchasing seafood, while production method, wild-caught or farm-raised, was the least important attribute. Using a discrete choice experiment (CE), two shellfish products available in South Carolina, oysters, and shrimp are used to measure consumers’ willingness to pay for these products based on labels describing the source of origin and ecolabels relating to sustainability. Our results show that South Carolina consumers are willing to pay more for local, sustainably wild-caught clams, and shrimp, and more for local, sustainably farm-raised oysters. Lastly, interviews with SC oyster growers were conducted to understand the scale of these operations based on production metrics. This information was then utilized to assess whether implementation of an ecolabel for oyster growers to certify their production process to be sustainable

Trends in U.S. Local and Regional Food Systems: A Report to Congress

This report provides an overview of local and regional food systems across several dimensions. It details the latest economic information on local food producers, consumers, and policy, relying on findings from several national surveys and a synthesis of recent literature to assess the current size of and recent trends in local and regional food systems. Data are presented on producer characteristics, survival rates and growth, and prices. The local food literature on consumer willingness to pay, environmental impacts, food safety regulations, and local economic impacts is synthesized when nationally representative data are unavailable. Finally, this report provides an overview of Federal and selected State and regional policies designed to support local food systems and collaboration among market participants

LOGISTICAL COSTS AND RISKS OF MARKETING GENETICALLY MODIFIED WHEAT

Genetically modified (GM) grains have increased in importance. Moving biotech grains from producers to processors is a challenge for the grain handling system that could involve increased segregations. The objective of this research is to determine how testing strategies affect the logistical costs of a grain pipeline when GM wheat is present. A logistical model was developed and simulated to analyze impacts of uncertainty in demand, receipts, test accuracy, rail deliveries, and transit time. Sensitivities were conducted on certain variables to determine their effects on logistical costs. Analysis revealed that logistical costs are impacted by the number of quality categories and uncertainties in the system. Adding GM grains increased costs due to testing requirements and increased segregation demands as the number of wheat categories rises.Genetically Modified (GM) Grains, Logistical Costs, Testing, Risk, Segregation, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,

Empirically Evaluating Consumer Characteristics and Satisfaction with Organic Products

Organic production has been practiced in the U.S. since the late 1940s. The distinction between organic and conventional produce is that organic produce is grown with a maximum of five percent synthetic pesticide residues and no prohibited USDA substance can be used on the land three years prior to producing organic produce. No genetic engineering is to be used on the crops, and no antibiotics are to be used on the livestock (USDA, 2001). Organic produce is sold at a premium above the price for conventional produce due to the increased production costs associated with following these rules. Price premiums vary greatly among different organic products and retail facilities. Consumers of these comparatively higher priced items traditionally have been the more affluent, educated members of the younger generation who have felt the need to pay more for organic produce mainly based on the better quality and the absence of pesticide residues. Estimated sales of organic produce in 2001 range between $5.5 and$6.5 billion dollars, as compared with $2.1 billion in 1995 or$3.3 billion in 1998 (Dimitri and Richman, 2000). The organic produce market has grown rapidly since the late 1980s when the media publicized the dangers of pesticide residues. However, the even quicker growth in the late 1990s may be attributed to the relatively stronger economy. The purpose of this study is to document a profile of the typical organic consumer in the northeastern U.S., specifically for the purpose of this study in New Jersey, New York, and Pennsylvania. Specifically, the objectives are to determine consumer characteristics such as: • The demographic statistics of organic purchasers, including income level, education level, household size, etc. • The perception of organic produce compared to conventional produce in terms of prices, variety, and quality. • Consumer willingness to pay for organic compared to conventional produce. vi The majority of consumers, 64 percent, purchased mostly conventional produce and some organic produce when choosing their fresh produce. Tomatoes were the most commonly purchased vegetables among organic produce, bought by 25% of the respondents. Also, organic farmers in the same area reported growing tomatoes more than any other organic crop (Govindasamy et al., 2000). Organic lettuce was purchased by more than a fifth of respondents. Organic carrots, apples and broccoli were organic products that were purchased by more than 10 percent of respondents. The demographic characteristics of organic produce buyers include the following: • Smaller sized households, • Households with less children, • Households that spend more in general on produce monthly, • Households in the suburbs, as compared to urban or rural areas, • Female shoppers, • Younger shoppers, • More educated shoppers, • Higher income households, and • Non-married households. Five econometric models were formulated to: • Document the characteristics of consumers who bought organic produce at least once in the past. • Document the characteristics of consumers who bought organic produce frequently. • Document the characteristics of consumers who thought that organic produce is of a higher quality than conventional produce. • Document the characteristics of consumers who are willing to pay 10 percent or more for organic produce than conventional produce. • Document the characteristics of consumers who are willing to pay 20 percent or more for organic produce than conventional produce. vii The logit framework is used in this analysis because its asymptotic characteristic constrains the predicted probabilities to a range of zero to one. The estimation method is the maximum likelihood estimation (MLE). Hence, given certain organic consumer characteristics, the probability that the consumer has bought organic produce at least once in the past is found. Similar explanations exist for the other four models. The five models are estimated using information obtained from the consumers’ questionnaire located in Appendix I at the end of this report. Almost half of the respondents had purchased organic produce at least once in the past. Consumers who are willing to switch supermarkets to buy organic and who are ready to buy additional organic if it were more readily available had purchased organic produce at least once in the past. They also frequently purchase organic apples, organic carrots or organic spinach, and feel that organic is priced higher than conventional produce. These consumers also live in Pennsylvania (as compared to living in New Jersey or New York), in the suburbs, have attended at least some college, shop according to the availability of fresh produce, are married, are under 50 years of age, and have fewer than four people living in their household. About ten percent of the respondents had purchased organic produce on a frequent basis. These respondents are most likely to be consumers who are willing to switch supermarkets to buy organic produce and are ready to buy additional organic produce if it were more readily available. They also frequently purchase organic apples or organic spinach and believe that organic produce is not priced higher than conventional produce. They have likely heard or read news reports about IPM, visit farmer’s markets less frequently, and are female. Almost one-third of the respondents feel that organic produce is of a higher quality than conventional produce. These respondents are most likely to be consumers that are willing to switch supermarkets to buy organic produce and are ready to buy additional organic produce if it were more readily available. These consumers also frequently purchase organic carrots or organic spinach and feel that organic produce is priced viii higher and has more variety than conventional produce. They are more likely to live in Pennsylvania, grow their own fruits or vegetables and visit farmer’s markets less frequently. They also have fewer than three children, are under 50 years of age, are not married, and are female. Almost one-quarter of the respondents stated that they would be willing to pay a premium of 10 percent or more for organic produce than conventional produce. These respondents are most likely to be consumers that grow their own fruits or vegetables, are willing to switch supermarkets to buy organic produce and are ready to buy additional organic produce if it were more readily available. They also frequently purchase organic carrots and believe that organic produce is priced higher than conventional produce but that it does not have more variety than conventional produce. They also are not greatly affected by price when purchasing fresh produce, feel that residues from pesticides and herbicides are a serious hazard and frequently shop according to the availability of fresh produce. Additionally, these consumers have fewer than three children in their household and are under 50 years of age. Almost ten percent of the respondents stated that they would be willing to pay a premium of 20 percent or more for organic produce than conventional produce. These respondents are most likely to be consumers that are willing to switch supermarkets to buy organic produce and are ready to buy additional organic produce if it were more readily available. They frequently purchase organic produce carrots, are not greatly affected by price when purchasing fresh produce, and shop according to the availability of fresh produce. These consumers are not married and are under 50 years of age.Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,