The Long-Term Effects of Marketing Organic Products

1 Pages Posted: 18 Sep 2019

See all articles by Koichi Yonezawa

Koichi Yonezawa

Cornell University - Dyson School of Applied Economics and Management

Miguel Ignacio Gomez

Cornell University - Food Industry Management Program

Edward W. McLaughlin

Cornell University - School of Applied Economics and Management

Date Written: September 9, 2019

Abstract

Demand for organic foods has been increasing in many product categories. Prior studies report that consumers are willing to pay premium prices for organic products, but little is known about their role in supermarket competition. In this study, we investigate long-term cross-chain impacts of marketing organic and conventional products. Our findings reveal that prices of conventional products generate more store traffic than do prices of organic products. On the other hand, in response to a price increase for organic products, consumers tend to switch to conventional products within a retail chain rather than to other retail chains.

Keywords: organic products, food marketing, marketing mix, vector autoregressive models

JEL Classification: L13, M31

Suggested Citation

Yonezawa, Koichi and Gomez, Miguel Ignacio and McLaughlin, Edward W., The Long-Term Effects of Marketing Organic Products (September 9, 2019). Available at SSRN: https://ssrn.com/abstract=3450850

Koichi Yonezawa (Contact Author)

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Miguel Ignacio Gomez

Cornell University - Food Industry Management Program ( email )

Department of Applied Economics and Management
Ithaca, NY 14853
United States
607-255-8472 (Phone)
607-255-4776 (Fax)

Edward W. McLaughlin

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States
607-255-3169 (Phone)
607-255-4776 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
3
Abstract Views
21
PlumX Metrics