PARKER, Fiona. (1987). A study of marketing efficiency in the fruit and vegetable wholesale markets of the United Kingdom. Masters, Sheffield Hallam University (United Kingdom)..
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20186:473103
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10700831.pdf - Accepted Version
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10700831.pdf - Accepted Version
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Abstract
The area of concern is the efficiency of the distribution system for fresh fruit and vegetables, with particular respect to the wholesaler operating within the wholesale markets. Distribution is an area increasingly experiencing the effects of the dominant role of the major retail multiple outlets.The broad thesis being explored is that a long period of fundamental and accelerating change (which can be dated from the 1950s with the restoration of the 'traditional' system after the war) can be explained to a considerable extent by pressure exerted on the wholesaling function through its immediate market environment, ie growers and retailers and broader changes in society which articulate themselves through the food chain by shopping behaviour. These changes raise questions about the impact they have had on the components of efficiency and given the changing structure, the structure-conduct-performance paradigm provides a framework for analysis. Changing elements of structure and conduct were identified with the aid of postal questionnaires, interviews and case studies, and marketing margin analysis was used as anindicator of relative performance. Thus a measure of efficiency was generated using cost, price and loss data for selected items of produce from the same source being distributed via both the multiple retail and independent retail channels to the consumer. The broad conclusions indicate that distribution via the multiple retailer is more cost effective, despite high investment in technology, as a result of their economies of scale. The wholesalers' distribution operation is under pressure as their net margins are small (less than 1%), consequently restricting investment in available technology, and market throughput is stagnant. Currently few academic or practical studies are available to the industry. This study offers a measure of change and indicates the relative efficiencies of the distribution systems. It also develops implications for future developments and improvements in the wholesale function in the United Kingdom.
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