Food SMEs Face Increasing Competition in the EU Market: Marketing Management Capability Is a Tool for Becoming a Price Maker. Issue 2 (11th October 2013)

• Record Type: Journal Article
• Authors: Banterle, Alessandro; Cavaliere, Alessia; Carraresi, Laura; Stranieri, Stefanella
• Is Part Of: Agribusiness. Volume 30:Issue 2(2014)
• Page Start: 113
• Page End: 131
• Publication Date: 2013-10-11
• Subjects: Agriculture -- Economic aspects -- Periodicals; Agriculture -- Finance -- Periodicals; Agricultural industries -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- United States -- Finance -- Periodicals; Agricultural industries -- United States -- Periodicals; 338.1
• DOI: 10.1002/agr.21354
• Languages: English
• ISSNs: 0742-4477

Abstract

<abstract abstract-type="main"> <title>ABSTRACT</title> <p>The price‐making ability of food small and medium‐sized enterprises (SME) is important for their market survival. Since pricing is a part of marketing activities, by developing specific marketing capabilities, firms can improve their ability to make pricing decisions. This paper aims at evaluating the relationship between marketing capabilities and a firm's price‐making ability. A survey was conducted based on a sample of 371 food SMEs in the EU. We applied an Ordinal Regression Model to evaluate the determinants of a firm's price‐making ability. The analysis results revealed a certain ability of SMEs to set prices. Market analysis and marketing strategy planning capabilities are positively related to the price‐making ability of a firm, while firm size is not. Supply chain relationships play a crucial role in price‐making due to the strong constraint presented by the presence of vertical competition between food SMEs and supermarkets. (L25, L66, M31)</p> </abstract>