Heterogeneity in the Likelihood of Market Advisory Service Use by U.S. Crop Producers

Agribusiness: An International Journal, Vol. 21, No. 1, pp. 109-128, January 2005

39 Pages Posted: 4 Oct 2005

See all articles by Joost M. E. Pennings

Joost M. E. Pennings

Maastricht University; Wageningen UR; University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Scott H. Irwin

University of Illinois at Urbana-Champaign

Darrel L. Good

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

Olga Isengildina Massa

Virginia Polytechnic Institute and State University

Date Written: January 2005

Abstract

Analysis of a unique data set of 1,400 U.S. crop producers using a mixture-modeling framework shows that the likelihood of Marketing Advisory Services (MAS) use is, among others, driven by the perceived performance of MAS in terms of regarding return and risk reduction, the match between the MAS and the crop producer's marketing philosophy, and the interaction between them. The influence of these factors on crop producers' MAS usage is not homogeneous across crop producers. The heterogeneity is played out in different MAS choices and appears to be driven by crop producers' risk attitudes.

Keywords: Marketing advisory services, marketing philosophy, mixture model, financial performance, heterogeneity, risk attitudes, crop producers

JEL Classification: D21, G1, M2, N2, Q00

Suggested Citation

Pennings, Joost M. E. and Irwin, Scott and Good, Darrel L. and Isengildina Massa, Olga, Heterogeneity in the Likelihood of Market Advisory Service Use by U.S. Crop Producers (January 2005). Agribusiness: An International Journal, Vol. 21, No. 1, pp. 109-128, January 2005, Available at SSRN: https://ssrn.com/abstract=811684

Joost M. E. Pennings (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

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

1301 W. Gregory Drive
326 Mumford Hall MC-710
Urbana, IL 61801
United States
217-244-1284 (Phone)
217-333-5538 (Fax)

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

Scott Irwin

University of Illinois at Urbana-Champaign ( email )

344 Mumford Hall
1301 W. Gregory Dr.
Urbana, IL 61801
United States
217-333-6087 (Phone)

HOME PAGE: http://https://scotthirwin.com/

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

Olga Isengildina Massa

Virginia Polytechnic Institute and State University ( email )

250 Drillfield Drive
231-A Hutcheson Hall
Blacksburg, VA 24061
United States
24061 (Fax)

HOME PAGE: http://https://aaec.vt.edu/people/faculty/Isengildina_Olga.html

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