Antecedents of loyalty for food products – Investigating the effects of subjective constructs

Our research aimed to reveal the effects that can be observed during the buying process of food products and can influence the decisions of customers. We focused on the role of enduring involvement in customers’ behavioural loyalty, that is, the repurchase of food brands. To understand this relationship in a more sophisticated way, we involved two mediating constructs in our conceptual model: perceived risk and perceived knowledge of food products. The data collection was carried out among undergraduate students in frame of an online survey, and we used SPSS/AMOS software to test the model. The results only partly supported our hypothesis, although the involvement effects on loyalty and the two mediating constructs were strong enough, loyalty couldn’t be explained well by perceived risk and knowledge. The roles of further mediating/moderating variables should be determined and investigated in the next section of the research series. Keywords: involvement brand loyalty, subjective knowledge, perceived risk, food products

Vertical intra-industry trade and the EU accession: The case of Hungarian agri-food sector

The aim of this paper is to examine the relationship between the factor endowment and the pattern of intra-industry trade. Our empirical analysis relates to Hungary’s intra-industry trade in agri-food products with 26 member states of the EU over the period 1999-2010. Estimations reject the comparative advantage explanation of vertical intra-industry trade and provide partial support the prediction of Flam and Helpman model. Findings highlight that nature of factor endowments play also important role in explanation of vertical intra-industry trade. Other variables like market size and distance confirm the theoretical expectations. In addition, trade with new member states positively, whilst the EU accession ambigouosly influence the share of vertical IIT.

A horizontális és vertikális ágazaton belüli agrárkereskedelem meghatározó tényezői az EU új tagországaiban (Determinants of horizontal and vertical intra-industry agri-food trade in the new EU member-states)

Az ágazaton belüli kereskedelem egyre komolyabb szerepet tölt be a nemzetközi kereskedelemben, mind ez idáig azonban kevés mezőgazdasági témájú elemzés készült e témában. A cikk célja a horizontális és vertikális ágazaton belüli agrárkereskedelem meghatározó tényezőinek azonosítása az új tagországok és az EU–27 közötti kereskedelemben 1999–2010 között. Ehhez a szerző statikus és dinamikus panelmódszereket alkalmaz különböző specifikációkkal. Eredményei szerint a tényezőellátottság a horizontális ágazaton belüli kereskedelemmel negatív, míg a vertikálissal pozitív kapcsolatban áll. Az országok mérete az ágazaton belüli kereskedelem mindkét oldalával pozitívan, míg a távolság negatívan korrelál. Az eredmények azt is kimutatják, hogy az ágazaton belüli kereskedelem mértéke nagyobb, ha egy új tagország a kelet-közép-európai régióba exportál, és az is világossá vált, hogy az EU-csatlakozás pozitívan hatott az ágazaton belüli kereskedelemre, jelezve a gazdasági integráció kereskedelemösztönző szerepét. _____ Intra-industry trade (IIT) has a growing role in international trade, although the number of papers on its agricultural aspects is limited. This article identifies the determinants of horizontal and vertical intra-industry agri-food trade between new member-states (NMS) and the EU27 in 1999-2010, by applying to panel data static and dynamic models with different specifications. The results show that factor endowments are negatively related to agri-food horizontal intra-industry trade (HIIT), but positively to vertical intra-industry trade (VIIT). Economic size is positively and significantly related to both, while distance and IIT are found to be negatively related. This also suggests that HIIT and VIIT are greater if an NMS exports agri-food products to another NMS, while EU accession has had positive and significant impacts on both HIIT and VIIT, which suggests that economic integration fosters IIT.

Patterns and Drivers of the Agri-Food Intra-Industry Trade of European Union Countries

This paper investigates the drivers of agri-food intra-industry trade (IIT) indices in the European Union (EU-27) member states during the period from 2000–2011. The increased proportion of IIT in matched two-way agri-food trade of the EU-27 member states is consistent with economic integration and economic growth. When export prices were at least 15% higher than the import prices, high-vertical IIT, increased for most member states. This finding suggests that quality improvements occurred when comparing agri-food exports to similar imports of agri-food products. The IIT indices for both horizontal and vertical IIT are positively associated with higher economic development levels, new EU membership and EU enlargement. Additionally, as higher levels of economic development decreases, the size of the economy and marginal IIT increases the effects of agri-food trade liberalization on the costs of the labor market adjustment. Understanding how improvements in agri-food trade quality impact agribusiness and managerial competitiveness reveal significant policy implications.

Investigation of factors influencing loyalty – The role of involvement, perceived risk and knowledge

Our research aimed to reveal the effects that can be observed during the buying process of food products and can influence the decisions of customers. We focused on the role of enduring involvement in customers’ behavioural loyalty, that is, the repurchase of food brands. To understand this relationship in a more sophisticated way, we involved two mediating constructs in our conceptual model: perceived risk and perceived knowledge of food products. The data collection was carried out among undergraduate students in frame of an online survey, and we used SPSS/AMOS software to test the model. The results only partly supported our hypothesis, although the involvement effects on loyalty and the two mediating constructs were strong enough, loyalty couldn’t be explained well by perceived risk and knowledge. The roles of further mediating/moderating variables should be determined and investigated in the next section of the research series.

Impacts of EU Accession on Hungarian Primary and Processed Agricultural Trade

In 2004, Hungary joined the European Union (EU) along with nine other Central and Eastern European Countries, causing several changes in the field of agriculture. One of the major changes was the transformation of national agri-food trade. The aim of the paper is to analyse the effects of EU accession on the Hungarian primary and processed agri-food trade, especially considering revealed comparative advantages, by using recent data. Results suggest that EU accession raised the intensity of trade contacts but had a negative impact on trade balance. Nominal values of both exports and imports increased after 2004, however, Hungarian agriculture is increasingly based on raw material export and processed food import. It also turned out that revealed comparative advantages of Hungarian primary agri-food products in EU15 remained almost constant after accession, while comparative advantages of processed agri-food products has been gradually increasing by time and even reached the satisfactory level in some cases. From the policy perspective, it is apparent that there is a need for deeper structural reforms of the Hungarian agricultural and food sector is the future.

Az EU csatlakozás hatása az új tagországok agrárkereskedelmére

2004-ben és 2007-ben tizenkét új tagország csatlakozott az Európai Unióhoz, számos változást okozva az európai mezőgazdaságban. Az egyik legfontosabb fordulat az egyes nemzetek mezőgazdasági- és élelmiszer-kereskedelmében következett be. Az eredmények azt mutatják, hogy az új tagországok mezőgazdasági- és élelmiszer-kereskedelmének intenzitása jelentősen nőtt a csatlakozás hatására, ugyanakkor a külkereskedelem mérlege ezen a területen nagymértékben romlott több országnál is. A számítások azt is alátámasztották, hogy jelentős koncentráció ment végbe a kereskedelmi partnerek és a termékek tekintetében egyaránt. Mindemellett egyértelművé vált az is, hogy az új tagországok kereskedelmének struktúrája meglehetősen egyoldalúvá vált: az alapanyagok exportálása mellett az importált javak döntő többsége a feldolgozott termékek köréből került ki. A komparatív előnyök vizsgálata rámutatott, hogy az új tagországok legfontosabb agrártermékei megnyilvánuló komparatív előnnyel bírtak a csatlakozás előtt és után is, habár a legtöbb esetben ezen előnyök komolyan csökkentek.. Döntéshozói szempontból vizsgálva az eredményeket egyértelműen megállapítható, hogy az új tagországokban strukturális változtatások szükségesek a negatív folyamatok megállítása érdekében. A legfontosabb stratégiai cél pedig elsősorban a magas hozzáadott értékű, hazai alapanyagokból készített termékek exportálása. ______ In 2004 and 2007 twelve New Member States (NMS) joined the European Union (EU), causing several changes in the field of agriculture. One of the major changes was the transformation of national agri-food trade. The aim of the paper is to analyse the effects of EU accession on NMS agri-food trade. Results suggest that the intensity of NMS agri-food trade has increased significantly after accession, though there was a serious deterioration in NMS agri-food trade balance in most cases. It has also become evident that NMS agri-food trade was highly concentrated by country and by product. Moreover, our analyses highlight one of the most important characteristics of NMS agri-food trade structure - the focus on agri-food raw materials in export together with agri-food processed products in import. Regarding comparative advantage, results suggest that relevant NMS agri-food products had a revealed comparative advantage before and after accession, though to a weakening extent. From the policy perspective, there is a clear need for structural changes in NMS agriculture and agri-food sector in order to tackle the negative tendencies of national agri-food trade. The most important long-term goal should be the production and export of higher value-added processed products based on domestic raw materials.

Tax incentives applied against externalities: International examples of fat tax and carbon tax

This study assesses the Pigou taxes introduced as a response to negative externalities in practice. The authors analyze the international practice and effectiveness of taxation on food products harmful to health and on carbon emissions harmful to the environment and, in relation to these two types of taxes, the focus is on the opportunities and the factors reducing efficiency.

Tíz év az Európai Unióban - az új tagországok agrárteljesítményei = A decade in the EU: the agricultural performances of the new member-states

Több mint tíz év telt el az Európai Unió 2004. évi kibővülése óta. A tízéves évforduló jó lehetőséget kínált a mérlegkészítésre, annak vizsgálatára, hogy a legfrissebb elérhető adatok tükrében milyen fejlődési pályát tudhatnak maguk mögött az új tagországok mezőgazdasági szektorai. Írásunk célja a tíz kelet- európai EU-tagállam agrárteljesítményének értékelése, illetve ez alapján a csatlakozás nyerteseinek, illetve veszteseinek azonosítása. A rendelkezésre álló adatokat a többdimenziós faktoranalízis módszerével feldolgozva arra az eredményre jutottunk, hogy Lengyelország, Észtország és Litvánia hármasa tekinthető az agrárcsatlakozás abszolút nyertesének, míg a többi új tagállam nem volt képes teljes mértékben kihasználni a csatlakozás adta lehetőségeket. Az eredményekből az is látható, hogy a magas hozzáadott értékű termékekre való szakosodás jó stratégiának bizonyult, mert gyorsabb fejlődést biztosított, mint a mezőgazdasági alaptermékekre való koncentrálás. ____ The period of over ten years since the 2004 round of EU accessions provides a good opportunity to assess and take stock of agricultural developments in the new member- States, in light of the latest available data. The paper sets out to assess their agricultural performances and to identify the winners and losers by accession in this regard. Ranking individual country performances using Parallel Factor Analysis (PARAFAC) suggests that Poland, Estonia and Lithuania can be considered as winners, whereas the other countries failed to use the potentials of membership to the full. The results also suggest that focusing on agri-food products with a high added value proved a good development strategy for the sector. Countries that concentrated on producing agri-food raw materials lagged behind.

An empirical study of international private label branding in the food sector in Hungary

Private label branding strategies differ to that of the manufacturer. The study aims to identify optimal private label branding strategies for (a) utilitarian products and (b) hedonistic products, considering the special factors reflected in consumer behavior related to private labels in Hungary. The issue of House of Brands and Branded House strategies are discussed and evaluated in the light of retail business models. Focus group interviews and factor analysis of the survey found differences in branding strategies preferred by consumers for the two product categories. The study also outlines a strong trend in possible private label development based on consumer’s changing attitude in favor of national products.

Country-specific determinants of horizontal and vertical intra-industry agri-food trade: the case of Bulgaria and Romania

The article analyses patterns and country-specific determinants of agri-food trade of Bulgaria and Romania with the European Union. As literature focusing on agricultural aspects of the topic is limited, the paper seeks to contribute to the literature by providing up to date results and suggestions as well as by identifying the determinants of horizontal and vertical intra-industry trade of the Bulgaria and Romania after EU accession. Results suggest that intra-industry agri-food trade is mainly of vertical nature, referring to trade of different quality products. Results verify that determinants of horizontal and vertical IIT are similar and suggest that economic size and FDI are positively, while factor endowments and distance are negatively related to both sides of IIT. Results are mainly in line with the majority of empirical literature in the field.