How Large Commercial Producers Choose Input Suppliers: Expendable Products from Seed to Animal Health

Abstract

This study uses cluster analysis to identify buying behavior segments of commercial producers who purchase expendable products including seed, crop protection, animal health and feed. For the crop expendable products we find four buying behavior segments: Convenience, Price, Performance, and a fourth segment, called Balance buyers, who equally value the aforementioned factors as well as customer service and support services. For livestock expendable products we find three buying behavior segments: Balance, Price and Performance. We find that producers have product-specific buying behaviors and this is especially true for livestock producers. We discuss the implications of these customer segments for expendable input marketers and sales-people.

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