the impact of market advisory service recommendations on producers apos; marketing decisions(市场咨询服务的影响事情就让它建议生产商,营销决策).pdfVIP
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theimpactofmarketadvisoryservicerecommendationsonproducers
Journal ofAgricultural and Resource Economics 29(2):308-327
Copyright 2004 Western Agricultural Economics Association
The Impact of Market Advisory
Service Recommendations on
Producers Marketing Decisions
Joost M. E. Pennings, Olga Isengildina,
Scott H. Irwin, and Darrel L. Good
A conceptual framework is developed which provides insight into the factors affecting
the impact of market advisory service (MAS)recommendations on producer pricing
decisions. Data from a survey of 656 U.S. producers reveal that the perceived per-
formanceof the MAS, the way in which MAS recommendationsare delivered,as well
as the match between MAS and producers marketing philosophy, are important
factors explaining the impact of MAS recommendations.Risk attitude doesnot affect
the impact of MAS recommendations on producers7decisions, suggesting producers
are more interested in the price-enhancing characteristics of MAS advice than in its
risk-reducing features.
Key words: market advisory services, ordered probit model, producers marketing
decisions
Introduction
Agricultural producers in the United States continue to identify price and income risk
as one of their greatest sourcesof risk (e.g.,Patrick and Ullerich, 1996; Norvell and Lattz,
1999).Producers have a variety of price and income risk management tools at their
disposal. These include numerous public and private sources of market information,
futures and options contracts, an increasing number of yield and revenue insurance
instruments, and a new generation of cash-indexing contracts. While producers value
and utilize these tools, they place an especially high value on market advisory services
(MAS)as a source of price risk management
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