Contingent Approaches to Quality Based Pricing within the Agri-food Industry.

Hines, Peter Arthur, Bailey, Katherine Sarah and Francis, Mark ORCID: https://orcid.org/0000-0003-1029-3831 2006. Contingent Approaches to Quality Based Pricing within the Agri-food Industry. International Journal of Logistics 9 (3) , pp. 223-235. 10.1080/13675560600859193

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Abstract

The issues associated with traditional standard costing and transfer pricing systems are well documented. These approaches are particularly problematic within the agrifood industry because of the natural variability of products, market price volatility, poor understanding of production costs and low levels of customer alignment. Continuing competitive pressures on this industry are driving the need to identify more effective mechanisms. This paper examines one such mechanism, quality-based pricing (QBP), to understand whether this merits consideration as a viable alternative. The paper presents evidence from case studies of two separate QBP implementations. The results show that both schemes address the sector-specific issues and are “fit for purpose”, designed to match specific product and market characteristics. It is concluded that holistic forms of QBP can play a significant role within the agrifood industry, and further research is proposed to test a generic model to understand the wider applicability across the industry.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Uncontrolled Keywords:	Quality-based pricing ; Agrifood ; Lean supply
ISSN:	1469-848X
Last Modified:	17 Oct 2022 09:21
URI:	https://orca.cardiff.ac.uk/id/eprint/2869

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