Heterogeneity in the Likelihood of Market Advisory Service Use by U.S. Crop Producers

Pennings, Joost M. E.; Irwin, Scott H.; Good, Darrel L.; Isengildina Massa, Olga

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Heterogeneity in the Likelihood of Market Advisory Service Use by U.S. Crop Producers

Agribusiness: An International Journal, Vol. 21, No. 1, pp. 109-128, January 2005

39 Pages Posted: 4 Oct 2005

See all articles by Joost M. E. Pennings

Joost M. E. Pennings

Maastricht University; Wageningen University and Research (WUR); University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Scott H. Irwin

University of Illinois at Urbana-Champaign

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Olga Isengildina Massa

Virginia Polytechnic Institute and State University

Date Written: January 2005

Abstract

Analysis of a unique data set of 1,400 U.S. crop producers using a mixture-modeling framework shows that the likelihood of Marketing Advisory Services (MAS) use is, among others, driven by the perceived performance of MAS in terms of regarding return and risk reduction, the match between the MAS and the crop producer's marketing philosophy, and the interaction between them. The influence of these factors on crop producers' MAS usage is not homogeneous across crop producers. The heterogeneity is played out in different MAS choices and appears to be driven by crop producers' risk attitudes.

Keywords: Marketing advisory services, marketing philosophy, mixture model, financial performance, heterogeneity, risk attitudes, crop producers

JEL Classification: D21, G1, M2, N2, Q00

Suggested Citation: Suggested Citation

Pennings, Joost M. E. and Irwin, Scott and Good, Darrel L. and Isengildina Massa, Olga, Heterogeneity in the Likelihood of Market Advisory Service Use by U.S. Crop Producers (January 2005). Agribusiness: An International Journal, Vol. 21, No. 1, pp. 109-128, January 2005, Available at SSRN: https://ssrn.com/abstract=811684