Segmenting consumers to inform agrifood value chain development in Nepal

Article


Adhikari, Rajendra Prasad, Collins, Ray and Sun, Ximing. 2012. "Segmenting consumers to inform agrifood value chain development in Nepal ." International Food and Agribusiness Management Review. 15 (4), pp. 93-114.
Article Title

Segmenting consumers to inform agrifood value chain development in Nepal

ERA Journal ID18313
Article CategoryArticle
AuthorsAdhikari, Rajendra Prasad (Author), Collins, Ray (Author) and Sun, Ximing (Author)
Journal TitleInternational Food and Agribusiness Management Review
Journal Citation15 (4), pp. 93-114
Number of Pages22
Year2012
Place of PublicationUnited States
ISSN1096-7508
1559-2448
Web Address (URL)https://www.ifama.org/files/20110130_Formatted.pdf
Abstract

The Nepalese government is piloting agricultural projects that are described as taking a value chain approach to development. Although consumer value lies at the core of value chain man-agement principles, none of these projects adopts a consumer perspective. This is an example of a more widespread gap in both the literature and practice as to how consumer perspectives can be used in the development of agrifood value chains in developing countries. This paper addresses this gap by surveying consumers of tomatoes in Nepal, segmenting them using cluster analysis and demonstrating how consumer segmentation can provide strategic direction for value chain development. The research identifies four distinct segments of tomato consumers in Kathmandu. The high value consumer segment, which is also the largest segment, places most importance on credence-based attributes that cannot be ensured unless a whole-chain effort is employed, indi-cating that developing value chains would be necessary if this need is to be met, and that such effort would pay off. An analysis of existing supply chains shows discrepancies between con-sumer expectations and the delivery of value, suggesting improvement opportunities to develop these chains.

Keywordsvalue chain; consumer segmentation; agrifood; developing countries; Nepal
ANZSRC Field of Research 2020350605. Marketing management (incl. strategy and customer relations)
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Byline AffiliationsUniversity of Queensland
Institution of OriginUniversity of Southern Queensland
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