Ag. Marketing exam 2

  1. Define income elasticity
    Responsiveness of food consumption to an increase in income
  2. Know whether the income elasticity for raw products  at the farm level is less or greater than that of processed goods.
    The income elasticity of raw products is lower than that of food with the utilities added in the process
  3. What affects food consumption patterns
    • Physiological needs
    • social needs
    • economical needs
  4. Know that today it is important that farmers focus on satisfying the customers
  5. Understand transportation costs when it comes to shipping a raw product
    Locating processing plants
  6. What type of utility do food processors add to food products
    Form utility
  7. Define chain stores
    Must have 11 or more stores they gre out of search for operational efficiency
  8. Know retail pricing do not cater to farmers, although they influence farm prices and the movement of farm products through their pricing and promotional policies
  9. define dominant core
    Very large firms or well known brands
  10. Who are the channel captains of the food industry
    Gate keepers are the same as channel captains and are the food retailers
  11. The wheel of retailing suggests what?
    Retailers tend to alternate between low service with low prices and high service with high prices. To attract customers
  12. Define effective demand
    Demand or desire with money to back up the desire
  13. define latent demand
    Demand or desire without the money to back it up
  14. When you calculate income elasticity what would indicate an inferior good?
    If the income elasticity percentage is low
  15. Who is involved in food retailing
    • Super markets
    • connivence stores
    • specialized food stores
  16. Define a loss leader
    A product priced at less than sellers cost in hope of attracting customers who will then buy more profitable priced products
  17. Everyday low prices
    Maintained on every item all year round
  18. Today's food service market started when....
    The majority of the people moved from the country to the city
  19. Almost all the growth in food exports comes from ....
    Value added products
  20. About what percent of the US food supply Is imports
  21. What do we import more of "ag" or "non-ag" products?
    Non ag!!
  22. define supplementary imports
    non competitive products that are easier grown in places other than the US
  23. Define complimentary
    Competitive products such as meat products fruit and sugar
Card Set
Ag. Marketing exam 2
Ag. Marketing TVCC