Group purchasing: an analysis of performance and economies of size in preorder food cooperatives
1980
Cotterill, R.
Extract: Preorder consumer food cooperatives, commonly called food buying clubs, are a well known example of participatory consumer cooperation. Members directly contribute time and effort to the group endeavor to receive the cooperative's products and services. This article develops a theory to predict when consumers will join a preorder food cooperative. It also combines previous empirical research with a multiple regression analysis of the relationship among labor efficiency, group size and sales volume to evaluate the economic returns associated with different levels of operation.
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