An Analysis of Marketing Channel Choice Decisions by Smallholder Citrus Growers

Abstract

Citrus fruit is a perishable and seasonal agricultural produce and requires effective and efficient management to market it. The citrus supply chain is multifaceted and complex due to the presence of a large number of intermediaries. Therefore, the selection of an appropriate marketing channel by growers involves a complex decision-making process. Despite of the fact that citrus industry is growing in Pakistan where production is dominated by small scale citrus growers, no research has been done to evaluate and analyse the marketing channel choice decision making process of these citrus growers. A number of transaction costs, scocio-economic, demographic and psychological factors are involved in this decision-making process. This paper reviews the existing factors affecting decision making of small size citrus growers in citrus supply chain in Pakistan and also measures and analyses the factors that affect the marketing channel decisions of these small size growers. A multivariate decision analysis technique, conjoint analysis, has been used to analyse and evaluate the major factors affecting marketing channel choice decisions of small size citrus growers. The research would provide valuable information about citrus grower’s marketing decision making process and thus would contribute to improving the efficiency and effectiveness of citrus industry in Pakistan.

Keywords: decision making, marketing channel, factors, supply chain, multivariate decision analysis

Australian Academy of Business and Economics Review, vol 1, issue 1, July 2015, pp 50-84