Consumer Behavior in a Mirror of Economic Security of Agribusiness

Journal L' Association 1901 “SEPIKE”, 2014

Posted: 13 Aug 2018

See all articles by Sergii Gasanov

Sergii Gasanov

Academy of Financial Management, Ministry of Finance of Ukraine

Sergiy Petruha

Ukraine Academy of Financial Management

Nina Petruha

Academy of Financial Management, Ministry of Finance of Ukraine

Date Written: 2014

Abstract

The agricultural sector has leading position in the Ukrainian economy. In recent years the intensifying competition among producers has been noticed also on territories far from the conventional agricultural centers. It is connected with the expansion of national and foreign agro-industrial enterprises that caused a fierce struggle for the distribution networks which can lead effectively to final consumer, as well as an increasing of the sensitivity of marketing (sales) to the company policy in the sphere of its own economic security. The latest trends of falling effective demand of Ukrainian end-consumer are forcing us to approach more carefully to forecasting and planning "food basket". Also, this is due to simultaneous drop in exports of food to the Customs Union countries, especially to the Russian Federation – within 6 months of 2014 the export of Ukrainian agricultural products to Russia amounted USD 655,5 million, which is on 31.4% or USD 299,5 million less than in the same period in 2013. Furthermore, there is change in Ukrainian consumer’s preferences under the influence of economic factors (including crises), as well as under impact of changes in lifestyle of the modern person under the influence of the pro-European culture of consumption goods. As a consequence, the rational reaction of the population on sharp rise in prices was the increase of the average propensity to consume only in the period before 1995. But In relatively stable price period (1995-2006) this phenomenon was not observed which has led to increasing requirements to reliability and reasonableness of prognoses concerning of sown areas, based on typologization of consumer behavior during the analyzed period (1966-1991 and 1991-2006) with subsequent approximation on the economic security of agribusinesses.

Keywords: agricultural sector, foodstuffs, consumer behavior, economic security

Suggested Citation

Gasanov, Sergii and Petruha, Sergiy and Petruha, Nina, Consumer Behavior in a Mirror of Economic Security of Agribusiness (2014). Journal L' Association 1901 “SEPIKE”, 2014, Available at SSRN: https://ssrn.com/abstract=3154395

Sergii Gasanov

Academy of Financial Management, Ministry of Finance of Ukraine ( email )

Kyiv
Ukraine

Sergiy Petruha (Contact Author)

Ukraine Academy of Financial Management ( email )

Druzhby narodiv bulʹvar, 38
Kyiv, 01014
Ukraine

Nina Petruha

Academy of Financial Management, Ministry of Finance of Ukraine ( email )

Kyiv
Ukraine

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