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As the farm-to-retail price spread continues to grow, come cattle producers a beginning to consider integrating into the retail sector. Such a venture would require large investments in capital with uncertain return. This study seeks to determine the potential success of a stand-alone retail outlet selling “all natural” beef in an affluent area of Jackson, MS. Using choice-based conjoint analysis, demand for the new retail outlet is modeled as a function of the beef price at the store, distance of the store from consumers’ homes, distance of the store from consumers’ typical grocery store, and price of beef at substitute grocery stores. Simulation results suggest the proposed outlet could be a profitable venture, depending upon location and beef price.

Keywords: beef ; conjoint ; demand ; retail outlet

Issue Date: 2004-04

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/42939 Published in: Journal of Agricultural and Applied Economics, Volume 36, Number 1 Page range: 97-111

Total Pages: 15

JEL Codes: Q13; D12; D4; M31

Record appears in: Southern Agricultural Economics Association (SAEA) > Journal of Agricultural and Applied Economics





Autor: Lusk, Jayson L. ; Cevallos, Edgar

Fuente: http://ageconsearch.umn.edu/record/42939?ln=en







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