Managing the transition from a commodity to a differentiated good in an increasingly liberalized, pricedriven world is a challenge for Swiss producers of potatoes. To facilitate this process at the production level, knowledge about preferences in terms of product attributes is needed. We evaluate processor preferences regarding potato product attributes such as price and country of origin. Attributes are selected according to their influence on the buying decision of the processors. Additionally, we quantify the relative importance of product attributes for the main market segments chips, fries, and flakes. By applying a discreet-choice experiment with Bayesian estimation of individual partworth utilities and randomized first-choice models for scenario analysis, we find that color, size and producer price determine 46 % of the buying decision. However, while price is an important decision criterion, product and supplier criteria can be used to segment the market if the price premium is held within limits and size and color requirements are met.Resumen El manejo de la transición de un producto básico a un bien diferenciado en un mundo liberalizado en aumento, orientado hacia precios, es un reto para los productores Suizos de papa. Para facilitar este proceso a nivel de producción, es necesario el conocimiento acerca de las preferencias en términos de los atributos del producto. Evaluamos preferencias de procesamiento relacionadas a los atributos del producto papa, tales como precio y país de origen. Los atributos se seleccionan de acuerdo con su influencia en la decisión de compra de los procesadores.Adicionalmente, cuantificamos la importancia relativa de los atributos del producto para los principales segmentos del mercado, papas fritas, a la francesa y hojuelas. Mediante la aplicación de un experimento de selección a discreción, con estimación Bayesiana de utilidades de partes individuales valiosas y de modelos al azar de primera selección para análisis del escenario, encontramos que el color, tamaño y precio del productor, determinan el 46 % de la decisión de compra. No obstante, mientras que el precio es un criterio importante de decisión, los criterios del producto y de su proveedor pueden usarse para segmentar el mercado si se mantiene el precio de cotización dentro de los límites y se cubren los requerimientos de tamaño y color.

This study proposes a research design for the enhancement of validity and reliability in conjoint analysis research. For this purpose, we are applying the concept of feedback-driven exploration to conjoint analysis and assess the proposed research design concerning its benefits and limitations in respect of validity and reliability of results. The article is of interest for the field of preference elicitation through stated preference methods, and for model validation in transdisciplinary research. By applying the principle of feedback-driven exploration, we allow for feedback loops between researchers, industry experts and survey participants in order to strengthen both validity and reliability. A multicase study of the agricultural markets in Switzerland illustrates the functioning of the proposed research design. We find that feedback-driven exploration significantly increases validity and reliability by enhancing methodological rigor and implementing an errorcorrecting mechanism. Additionally, a better understanding of the underlying decision processes is supported by the design due to increased interaction between researchers, industry experts and market participants.

This study aimed to determine key attributes of milk that drive a processor's supply decisions and possibilities for differentiation based on these product attributes. Feedback-driven exploration was applied to derive product attributes relevant to the buying decision. Conjoint analysis with hierarchical Bayes estimation methods was used to determine the relative importance of attributes. Results show that the technical aspects of milk, as well as the price and country of origin, dominate the buying decision. Potential for differentiation was found for environmental and societal attributes as well as freedom from genetically modified products. Product and supplier criteria also provide the potential to segment the market if the price premium is held within limits.

No abstract

In this paper, we aim to shed light on processors’ preferences for attributes of wheat, industrial potatoes as well as fresh milk and assess the potential for differentiation strategies for Swiss farmers. Thus, we determine the attributes and levels that drive the buying decisions of Swiss processing companies. We then determine the relative importance of each attribute using adaptive choice–based conjoint analysis and hierarchical Bayes estimation methods. We apply randomized first-choice models to evaluate three differentiation strategies: 1) targeting processor preferences, 2) targeting the final consumers’ preferences, and 3) following a country-of-origin strategy. Results show that although price is an important buying criterion, environmental attributes and country of origin can be used to segment the market if the price difference is held within limits and technical and quality requirements are met. Strategies focusing on attributes valued by final customers prove promising for the milk market, while targeting industrial buyers’ internal preferences is more suitable for the industrial potato market. In the wheat market, the three strategies are almost equally important. Focusing on country of origin is less important in all three markets. Additionally, the different results for the different primary products indicate the need to design strategies by looking closely at the specific market and final good in question.