Analysis of Commodity Distribution Pattern and Price Setting Pattern

Abstract

This paper analyzes the distribution (marketing) channel behavior and pricing method of commodities that mostly contribute to inflation in Batam, those are chicken meat, spinach, red chili pepper, string bean, large frog (kangkung), mackerel (selar), and tuna fish (tongkol). The objectives of this research are (1) to break down the marketing chain of commodities, i.e. chicken meat, spinach, and mackerel (selar); (2) to know the formation of selling price of the commodities. The research was conducted by purposive - snow ball sampling starting from producers. The respondents involved are 19 producers, 3 importers, 22 wholesalers, and 58 retailers. As a whole, the research proves that the common channel level is channel three for vegetables and chicken meat involving producers/importers, wholesaler, and retailers. Whereas the number of channel levels for fish is four since collectors (pengepul) are involved.

Keywords: distribution (marketing) channel, pricing, commodities of CPI, inflation

JEL Classification: D3, P42, Q11, E31, L42