What is Special about Marketing Organic Products? How Organic Assortment, Price, and Promotions Drive Retailer Performance

@article{Bezawada2013WhatIS,
  title={What is Special about Marketing Organic Products? How Organic Assortment, Price, and Promotions Drive Retailer Performance},
  author={Ram Bezawada and Koen H. Pauwels},
  journal={Journal of Marketing},
  year={2013},
  volume={77},
  pages={31 - 51}
}
Higher sales and margins are key goals for retailers promoting emerging products, such as organics, but little is known about their marketing effectiveness and their cross-effects on conventional product sales. Extant research reports conflicting results about price and promotional sensitivity for organic products and does not address the impact of organic assortment. This article calculates long-term own- and cross-elasticities of organic and conventional product sales in response to changes… 

Figures and Tables from this paper

The Effectiveness of Promotional Cues for Organic Products in the German Retail Market

The market for organic products is constantly growing, but successfully promoting them remains a controversial issue. Marketing research shows that organic products such as fruits and vegetables

Wine consumers’ reaction to prices, organic production and origins at the point of sale: an analysis of household panel data

Abstract Price premiums are considered as major purchase barriers for organic products and therefore may prevent organic market growth. For wine, however, prices take a double and conflicting effect:

Price promotion of organic foods and consumer demand

Abstract Existing studies have examined the demand elasticities for organic products only in select categories, and their results for consumers' sensitivity to price changes are inconsistent.

The effects of price promotion on relative virtue and vice food products

Retailers use price promotion of light and regular products, but not all of these products are perceived as relative virtues and vices, respectively. This paper aims to identify whether consumers

Effects of multitier private labels on marketing national brands

Purpose This paper aims to understand empirically how shares of standard and premium private label (PL) products affect a retailer’s marketing mix decisions toward national brands (NBs).

"ORGANIC" AND OTHER PRODUCT ATTRIBUTES: CONSUMER PERCEPTIONS AND BUYING BEHAVIOUR REGARDING ORGANIC FOOD PRODUCTS

The expansion of the organic food market and the growing competition are factors that fuel the differentiation of organic food products. Differentiation may be achieved by developing “organic-plus”

Attracting Green Consumers as a Basis for Creating Sustainable Marketing Strategy on the Organic Market—Relevance for Sustainable Agriculture Business Development

There are clear suggestions for creating a sustainable marketing strategy for organic agriculture products as the main prerequisite for an increase of healthy food choices and fostering the future development of organic agriculture businesses at the local and global levels.

Organic Label, Bargaining Power, and Profit‐Sharing in the French Fluid Milk Market

The paper determines how the value-added created by an organic label is shared in a vertical chain among manufacturers and retailers. Using purchase data on the French fluid milk sector, we develop a

Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior toward the Price of Organic Food

Support for organic farming is a promising policy for improving sustainability in the food sector. Further consumer demand, however, is hindered by high prices. We review research from 2000 to 2014
...

References

SHOWING 1-10 OF 92 REFERENCES

Do Promotions Benefit Manufacturers, Retailers, or Both?

A large-scale econometric investigation of the effects of price promotions on manufacturer revenues, retailer revenues, and total profits indicates that manufacturer revenue elasticities are higher for promotions of small-share brands, for frequently promoted brands and for national brands in impulse product categories.

The Category-Demand Effects of Price Promotions

Although price promotions have increased in both commercial use and quantity of academic research over the last decade, most of the attention has been focused on their effects on brand choice and

Who Benefits from Store Brand Entry

Store brand entry has become a key issue in marketing as it may structurally change the performance of and the interactions among all market players. Based on their multivariate time-series analysis,

Differences in retail strategies on the emerging organic market.

Purpose – The organic product market can be considered as an emerging market. Since the 1990s it has experienced rapid growth, and supermarket chains have become the sales channel with the largest

The Effect of Price Promotions on Variability in Product Category Sales

Our objective in this research is to relate variability in product category sales to promotional activity in the product category, and other category specific characteristics. The findings may be

Asymmetric Promotion Effects and Brand Positioning

Several studies have shown that promotions of national brands yield more effect than those of store brands e.g., Allenby and Rossi 1991, Blattberg and Wisniewski 1989. However, the evolution of

Decomposition of the Sales Impact of Promotion-Induced Stockpiling

Promotion-induced consumer stockpiling has a negative impact on manufacturers because it moves forward in time brand sales that would have occurred later at full margin. However, the resultant

How Dynamic Consumer Response, Competitor Response, Company Support, and Company Inertia Shape Long-Term Marketing Effectiveness

Long-term marketing effectiveness is a high-priority research topic for managers, and emerges from the complex interplay among dynamic reactions of several market players. This paper introduces

The Long-Term Effects of Price Promotions on Category Incidence, Brand Choice, and Purchase Quantity

To what extent do price promotions have a long-term effect on the components of brand sales, namely, category incidence, brand choice, and purchase quantity? The authors answer this question by using
...