Ag. Marketing exam 2
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Define income elasticity
Responsiveness of food consumption to an increase in income
Know whether the income elasticity for raw products at the farm level is less or greater than that of processed goods.
The income elasticity of raw products is lower than that of food with the utilities added in the process
What affects food consumption patterns
Know that today it is important that farmers focus on satisfying the customers
Understand transportation costs when it comes to shipping a raw product
Locating processing plants
What type of utility do food processors add to food products
Define chain stores
Must have 11 or more stores they gre out of search for operational efficiency
Know retail pricing do not cater to farmers, although they influence farm prices and the movement of farm products through their pricing and promotional policies
define dominant core
Very large firms or well known brands
Who are the channel captains of the food industry
Gate keepers are the same as channel captains and are the food retailers
The wheel of retailing suggests what?
Retailers tend to alternate between low service with low prices and high service with high prices. To attract customers
Define effective demand
Demand or desire with money to back up the desire
define latent demand
Demand or desire without the money to back it up
When you calculate income elasticity what would indicate an inferior good?
If the income elasticity percentage is low
Who is involved in food retailing
specialized food stores
Define a loss leader
A product priced at less than sellers cost in hope of attracting customers who will then buy more profitable priced products
Everyday low prices
Maintained on every item all year round
Today's food service market started when....
The majority of the people moved from the country to the city
Almost all the growth in food exports comes from ....
Value added products
About what percent of the US food supply Is imports
What do we import more of "ag" or "non-ag" products?
define supplementary imports
non competitive products that are easier grown in places other than the US
Competitive products such as meat products fruit and sugar
Ag. Marketing exam 2
Ag. Marketing TVCC