Sales impacts of direct marketing choices: Treatment effects with multinomial selectivity
Producers who are planning to sell using direct marketing to consumers only or to both consumers and retailers experience declines in total sales. Based on survey data for US farmers from 2008 to 2010, the earnings decline is 71.3 per cent when marketing direct to consumers and 36.8 per cent for the diversified marketing decision. The direct marketing penalty is robust to inclusion of important demographic factors, farm experience and use of the internet, and characteristics of the farm operation such as crop choices and input use. Direct marketing is associated with higher sales declines for female farmers, highlighting a distributional impact on farmers that has not been discussed.
Publication Source (Journal or Book title)
European Review of Agricultural Economics
Park, T., Paudel, K., & Sene, S. (2018). Sales impacts of direct marketing choices: Treatment effects with multinomial selectivity. European Review of Agricultural Economics, 433-453. https://doi.org/10.1093/erae/jbx038