Analyzing Demand for Farmer-to-Consumer Direct Marketing and Size of Expenditures
2009
Lee, H.C. (Sejong University, Seoul, Republic of Korea), E-mail: [email protected]
The objective of this study was to estimate the expenditures of agricultural products on direct transaction, and to analyze the determinants of demand for the agricultural products. The study developed methods to estimate both annual volumes and spending of consumers in a single survey. Data were collected through sample survey of household overall in Korea. An in-season survey was utilized to estimate demand functions and the expenditures. Surveys were sent out in seven waves every month over the 2007. Annual volume of 3.7 per buyer was estimated by applying a logistic model to the average volume obtained from the in-season survey. Buyers spent an estimated 753.7 billion won on the agricultural products through the direct transaction in 2007. The determinants of demand for the participation decision, expenditures, and consumption decision on the direction marketing for agricultural products were also scrutinized.
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