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Understanding Ornamental Plant Market Shares to Rewholesaler, Retailer, and Landscaper Channels

Published online by Cambridge University Press:  26 January 2015

Roger A. Hinson ,
Krishna P. Paudel  and
Marco Velástegui
Roger A. Hinson
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University and LSU AgCenter, Baton Rouge, LA
Krishna P. Paudel
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University and LSU AgCenter, Baton Rouge, LA
Marco Velástegui
Affiliation:
State Utility Forecasting Group, Purdue University, West Lafayette, IN
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Abstract

Market channel alternatives that include garden centers, landscapers, mass merchandisers, and rewholesalers have contributed to the growth of ornamental crops sales in the United States. The impact of growers' business characteristics on shares of sales to these channels by firm size was estimated using the two-limit Tobit model. Important explanatory variables were regions of the United States, sales of plant groups, kinds of contract sales, and channel diversity. There were important differences in behavior by grower size. Overall, the results indicate a stronger than expected role for the rewholesaler channel as a preferred channel for ornamental plant sales.

Keywords

garden centerslandscapersmarket channelsmass merchandisersornamental plantsrewholesalerstwo-limit TobitM31L14
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 44 , Issue 2 , May 2012 , pp. 173 - 189
Copyright
Copyright © Southern Agricultural Economics Association 2012

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