Thomas Kopp, Bernhard Brümmer, Zulkifli Alamsyah and Raja Sharah Fatricia
In Indonesia, rubber is the most valuable export crop produced by small scale agriculture and plays a key role for inclusive economic development. This potential is likely to be…
Abstract
Purpose
In Indonesia, rubber is the most valuable export crop produced by small scale agriculture and plays a key role for inclusive economic development. This potential is likely to be not fully exploited. The observed concentration in the crumb rubber processing industry raises concerns about the distribution of export earnings along the value chain. Asymmetric price transmission (APT) is observed. The paper aims to discuss these issues.
Design/methodology/approach
This study investigates the price transmission between international prices and the factories’ purchasing prices on a daily basis. An auto-regressive asymmetric error correction model is estimated to find evidence for APT. In a subsequent step the rents that are redistributed from factories to farmers are calculated. The study then provides estimations of the size of this redistribution under different scenarios.
Findings
The results suggest that factories do indeed transmit prices asymmetrically, which has substantial welfare implications: around USD3 million are annually redistributed from farmers to factories. If the price transmission was only half as asymmetric as it is observed, the majority of this redistribution was re-diverted.
Originality/value
This study combines the approaches of non-parametric and parametric estimation techniques of estimating APT processes with a welfare perspective to quantify the distributional consequences of this intertemporal marketing margin manipulation. Especially the calculation of different scenarios of alternative price transmissions is a novelty. The data set of prices on such a disaggregated level and high frequency as required by this approach is also unique.
Details
Keywords
Dahmiri, Sigit Indrawijaya, Raja Sharah Fatricia and Anita Yasmin
Purpose – The aim of this study is to analyze the influence of social media-based promotion (personal relevance, interactivity, message, brand familiarity) to consumer purchasing…
Abstract
Purpose – The aim of this study is to analyze the influence of social media-based promotion (personal relevance, interactivity, message, brand familiarity) to consumer purchasing decision of Batik Jambi in the Asean Economic Community (AEC) era.
Design/Methodology/Approach – The sample in this study amounted to 90 people. The type of research used is explanatory research. The hypothesis itself were tested with multiple linear regression equations using the tool SPSS 21.0 for Windows.
Findings – The results of this research in which the variable of personal relevance, interactivity, message, and brand familiarity are able to explain the variable of purchasing decision is equal to 82.9%. Variables of personal relevance, interactivity, message, and brand familiarity have a significant influence on purchasing decisions either partially or simultaneously, while the message has a more dominant influence on purchasing decisions.
Research Limitations/Implications – The model significantly explains all the variables but in the future needs more testing for other variables to make the model more precise.
Practical Implications – The most dominant influence of social media-based promotional variables (personal revelance, interactivity, messege, brand familiarity) on consumer purchasing decision of Jambi’s Batik in Jambi City are analyzed.
Originality/Value – Increasing understanding about social media-based promotions to consumer purchasing decisions on Jambi’s Batik in AEC era.