Article: Implicit prices of product characteristics in the milk and cheese market Journal: Journal for Global Business Advancement (JGBA) 2008 Vol.1 No.4 pp.370 - 380 Abstract: Building a competitive advantage, which is based on differentiation, is more attractive to firms when many product characteristics are not perceptible prior to a purchase, as in the case of most food products. The hedonic price analysis is used in this paper to investigate the influence of food differentiation on consumer prices and to identify the implicit prices of product characteristics related to the milk and cheese market in Greece. Its results will help those involved in the milk and cheese industry to adopt the appropriate product development and product differentiation strategies on a national and international scale. The analysis results reveal that milk retail prices are influenced by fat content, production and processing conditions, product enrichment, and the size, type or form of packaging. Cheese prices are influenced by the origin of the milk (domestic, sheep or goat), packaging size and the protected designation of origin element. Inderscience Publishers - linking academia, business and industry through research

Title: Implicit prices of product characteristics in the milk and cheese market

Authors: Philippos Karipidis, Stamatis Aggelopoulos, Efthimia Tsakiridou

Addresses: Department of Farm Management, School of Agricultural Technology, Alexander Technological Educational Institute of Thessaloniki, 57400, Sindos, PO Box 141, Greece. ' Department of Farm Management, School of Agricultural Technology, Alexander Technological Educational Institute of Thessaloniki, 57400, Sindos, PO Box 141, Greece. ' Food Marketing at the Aristotle University of Thessaloniki, Department of Agricultural Development, Thessaloniki, Greece

Abstract: Building a competitive advantage, which is based on differentiation, is more attractive to firms when many product characteristics are not perceptible prior to a purchase, as in the case of most food products. The hedonic price analysis is used in this paper to investigate the influence of food differentiation on consumer prices and to identify the implicit prices of product characteristics related to the milk and cheese market in Greece. Its results will help those involved in the milk and cheese industry to adopt the appropriate product development and product differentiation strategies on a national and international scale. The analysis results reveal that milk retail prices are influenced by fat content, production and processing conditions, product enrichment, and the size, type or form of packaging. Cheese prices are influenced by the origin of the milk (domestic, sheep or goat), packaging size and the protected designation of origin element.

Keywords: cheese market; hedonic price analysis; implicit prices; milk market; product differentiation; quality characteristics; food differentiation; Greece; product development; milk retail prices; cheese retail prices.

DOI: 10.1504/JGBA.2008.019935

Journal for Global Business Advancement, 2008 Vol.1 No.4, pp.370 - 380

Published online: 16 Aug 2008 *

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Title: Implicit prices of product characteristics in the milk and cheese market

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