Segmenting consumers to inform agrifood value chain development in Nepal

Adhikari, Rajendra Prasad and 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. ISSN 1096-7508


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.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 27 May 2016 23:48
Last Modified: 20 Mar 2017 23:30
Uncontrolled Keywords: value chain; consumer segmentation; agrifood; developing countries; Nepal
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1505 Marketing > 150503 Marketing Management (incl. Strategy and Customer Relations)
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3506 Marketing > 350605 Marketing management (incl. strategy and customer relations)
Socio-Economic Objectives (2008): B Economic Development > 90 Commercial Services and Tourism > 9099 Other Commercial Services and Tourism > 909999 Commercial Services and Tourism not elsewhere classified

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