Market of Organic Products in Regions: Distribution Channels and Development Strategy
DOI:
https://doi.org/10.17059/2020-1-11Keywords:
consumer market, organic products, distribution channels, consumer loyalty, GIS profiles, marketing strategies, marketing, region, Republic of CrimeaAbstract
The development of distribution channels in the Republic of Crimea can enhance forming a regional market for organic products. In this regard, we proposed and tested a methodology for studying consumer loyalty to distribution channels. The research methodology includes various research procedures: marketing analysis with the use of a set of economic-mathematical and statistical analysis methods implemented in the Statistical Package for the Social Sciences (SPSS); mapping with the use of geographical information system (CIS) technology to identify the regions’ geo-information profiles; strategic analysis of the perspective directions for developing the distribution channels depending on different marketing strategies. Quantitative calculation of loyalty indices allowed determining three groups of the distribution channels depending on their consumer appeal. Additionally, we noted the advantages and disadvantages of distribution channels. Marketing research of the target consumer of organic products has shown that the prevailing factors of the “environmental” choice are pricing policy, quality, sell-by dates, breadth of assortment, level of service, availability and comfort when purchasing products. Assessment of the density of distribution channels’ points of presence in the regions has revealed promising areas for the development of channels adapted to the regions’ specializations. The manufacturers of organic products and state authorities can use the elaborated system of assessing distribution channels and recommendations for selling organic products depending on the levels of their demand in the Republic of Crimea can be applied by organic products producers and State authorities, taking into account the real market size.References
Pearson, D. (2002). Marketing organic food: Who buys it and what do they purchase? Food Australia, 4(1), 31–34.
Pearson, D. & Henryks, J. (2008). Marketing organic products: Exploring some of the pervasive issues. Journal of Food Products Marketing, 1(44), 95–108.
Smith-Spangler, C., Brandeau, M. & Brandeau, L. (2012). Are organic foods safer or healthier than conventional alter- natives? A systematic review. Annals of Internal Medicine, 157(5), 348–366.
Bartels, J. Reinders, M. J. (2010). Social identification, social representation, and consumer innovativeness in an organic food context: A cross-national comparison. Food Quality and Preference, 21(4), 347–352. DOI: 10.1016/j.food-qual.2009.08.016.
Waters, D. (2003). Logistics: An Introduction to Supply Chain Management. GB: Palgrave Macmillan, Ltd, 2003, 369 p.
Segetlija, Z., Mesarić, J & Dujak, D. (2011). Importance of distribution channels-Marketing channels-for national economy. 22nd CROMAR Congress, 785–809.
Specht, G. (1988). Distributions-Management. Stuttgart: Verlag W. Kohlhammer GmbH, 129 p.
Kotler, P. & Keller, K. L. (2008). Marketing, Management: 12th Ed. Prentice-Hall, 816.
Ostrow, R. (2008). The Fairchild Dictionary of Retailing, Second Edition. New York: Fairchild Books, Inc, 432.
Hill, A. V. (2010). The Encyclopedia of Operations Management — 2010 Edition: A field manual and encyclopedic glossary of operations management terms and concepts. Clamshell: Beach Press, 165.
Kotler, P., Wong, V., Saunders, J. & Armstrong, G. (2010). Principles of Marketing. Prentice-Hall, 211.
Atănăsoaie, G. (2011). Distribution channels on the organic foods market. Journal of Horticulture, Forestry and Biotechnology, 15(3), 19–25.
Gbadamosi, A. (2009). Cognitive dissonance: The implicit explication in low-income consumers’ shopping behaviour for “low-involvement” grocery products. International Journal of Retail & Distribution Management, 37(12), 1077–1095. DOI: 10.1108/09590550911005038.
Pearson, D. (2001). How to increase organic food sales: Results from research based on market segmentation and product attributes. Australasian Agribusiness Review, 9(8), 1–8.
Pearson, D., Henryks, J., Sultan, P. & Anisimova, T. (2013). Organic food consumers: Exploring purchase frequency to explain consumer behavior. Journal of Organic Systems, 8(2), 50–63.
Pearson, D., Henryks, J. & Moffitt, E. (2007). What do buyers really want when they purchase organic foods? An investigation using product attributes. Journal of Organic Systems, 2(1), 1–9.
Dean, M., Raats, M. & Shepherd, R. (2008). Moral concerns and consumer choice of fresh and processed organic foods. Journal of Applied Social Psychology, 38(8), 2088–2107.
Wong, A. & Zhou, L. (2006). Determinants and outcomes of relationship quality. Journal of International Consumer Marketing, 8(3), 81–105.
Akın, E. (2012). Literature Review and Discussion on Customer Loyalty and Consciousness. European Journal of Economics, Finance and Administrative Sciences, 51, 158−173.
Jacoby, J. & Kyner, D. B. (1973). Brand loyalty vs. repeat purchasing behavior. Journal of Marketing Research, 10(1), 1–9.
Kumar, V. & Shah, D. (2004). Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing, 80(4), 317–330.
Cunningham, R. M. (1961). Customer loyalty to store and brand. Harvard Business Review, 39(6), 127–137.
Tucker, W. T. (1964). The development of brand loyalty. Journal of Marketing Research, 1(3), 32–35.
Dick, A. S. & Basu, K. (1994). Customer loyalty: toward an integrated conceptual Framework. Journal of the Academy of Marketing Science, 22(2), 99–113.
Omar, O. & Sawmong, S. (2007). Customer Satisfaction and Loyalty to British Supermarkets. Journal of Food Products Marketing, 13(2), 19–32. DOI: 10.1300/J038v13n02_02.
Gounaris, S. & Stathakopoulos, V. (2004). Antecedents and Consequences of Brand Loyalty: An Empirical Study. Journal of Brand Management, 11(4), 283–306.
Koichubekov, B. K., Sorokina, M. A. & Mkhitaryan, X. E. (2014). Opredelenie razmera vyborki pri planirovanii nauchnogo issledovaniya [Sample size determination in planning of scientific research]. Mezhdunarodnyy zhurnal prikladnykh i fundamentalnykh issledovaniy [International Journal of Applied and Fundamental Research], 4, 71–74. (In Russ.)
Yarosh, O. B. & Mitina, E. A. (2018). Issledovanie assortimenta i kanalov tovarodvizheniya organicheskoy produktsii v Respublike Krym [Studying the Range of Organic Products and Their Distribution Channels in the Republic of Crimea]. Regionologiya [Regionologiya], 1, 90–107. (In Russ.)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Olga Borisovna Yarosh, Ella Alexandrovna Mitina
This work is licensed under a Creative Commons Attribution 4.0 International License.
