The Impact of Market Advisory Service Recommendations on Producers' Marketing Decisions

Posted: 23 Jun 2004

See all articles by Joost M. E. Pennings

Joost M. E. Pennings

Maastricht University; Wageningen UR

Olga Isengildina

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Scott H. Irwin

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Abstract

A conceptual framework was developed that provides insight into the factors affecting the impact of these recommendations on producer pricing decisions. Data from 656 U.S. producers reveal that the perceived performance of the Market Advisory Services (MAS), the way in which MAS recommendations are delivered, as well as the match between MAS and producer's marketing philosophy are important factors explaining the impact of MAS recommendations. Risk attitude does not affect the impact of MAS recommendations on producers' decisions, indicating that producers are more interested in the price-enhancing characteristics of MAS advice than in its risk-reducing features.

Keywords: Market advisory services, ordered probit model, producers' marketing decisions

JEL Classification: L1, L2, M31, Q12, C80, D20, D40, D80

Suggested Citation

Pennings, Joost M. E. and Isengildina, Olga and Irwin, Scott H. and Good, Darrel L., The Impact of Market Advisory Service Recommendations on Producers' Marketing Decisions. Journal of Agricultural and Resource Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=557621

Joost M. E. Pennings (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Olga Isengildina

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
326 Mumford Hall, MC-710
Urbana, IL 61801
United States

Scott H. Irwin

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
326 Mumford Hall, MC-710
Urbana, IL 61801
United States

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
326 Mumford Hall, MC-710
Urbana, IL 61801
United States

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