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Modern Food Retailers and Traditional Markets in Developing Countries: Comparing Quality, Prices, and Competition Strategies in Thailand

OAR@ICRISAT

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Relation http://oar.icrisat.org/5411/
http://dx.doi.org/10.1093/aepp/ppr018
 
Title Modern Food Retailers and Traditional Markets in Developing Countries: Comparing Quality, Prices, and Competition Strategies in Thailand
 
Creator Schipmann, C
Qaim, M
 
Subject Agriculture-Farming, Production, Technology, Economics
 
Description Supermarkets and hypermarkets are expanding rapidly in many developing countries. While consequences for farmers and consumers were analyzed recently, little is known about the implications for traditional retail formats such as wet markets. Using data from a market survey in Thailand and hedonic regressions, we analyze quality and prices for fresh vegetables from different retail outlets. Compared to wet markets, modern retailers sell higher quality at higher prices, indicating that they are primarily targeting better-off consumers, and not directly competing for the same market segments. Yet there are signs that modern and traditional markets will gradually converge. Policy implications are discussed.
 
Publisher Agricultural and Applied Economics Association
 
Date 2011
 
Type Article
PeerReviewed
 
Format application/pdf
 
Language en
 
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Identifier http://oar.icrisat.org/5411/1/AppEconPerspPolicy_%2033_3_345%E2%80%93362_2011.pdf
Schipmann, C and Qaim, M (2011) Modern Food Retailers and Traditional Markets in Developing Countries: Comparing Quality, Prices, and Competition Strategies in Thailand. Applied Economic Perspectives and Policy, 33 (3). pp. 345-362. ISSN 2040-5804