Product Marketing Link Sample Clauses

Product Marketing Link. Source: Tilanus, (1997) The transacting parties can take advantage over by acting opportunistically towards the other parties when there is asymmetry of information. This will increase transaction cost because safeguard has to put in place or need to have coordination (Xxxxxxxx, Xxxxxxxx and Xxxxxxxx, 2003). It has been argued that these coordination, or mundane, transaction costs rise when value chains are producing non-standard products, products with integral product architectures, and products whose output is time sensitive (Xxxxxxx and Xxxxx, 2000). According to Xxxxxxx, Xxxxxxxx and Xxxxxxxx, (2003), transaction costs is the costs involved in coordinating activities along the chain. Transactions costs could arise at the production level in the case of finding input suppliers, negotiating the term of purchase, and verifying the quality of input and the sale price. They can also arise from asymmetric information in the process of acquiring credit and hiring labor, which requires monitoring and supervision of hired workers. At the marketing level, transaction costs arise in the process of finding a buyer, negotiating the sale price and verifying the quality of product and reliability of weights (Xxxxxxxx, et al., 2007). These production and market level transaction costs are exacerbated by incomplete information which is causing opportunism behavior, geographical dispersion of the farmers which increase the cost of transportation, frequency or volume of transaction which results into diseconomies of scale, the degree to which the assets needed to complete the exchange are specific to the transaction and other cost that help in carrying out the transaction. Incomplete information Figure 4.2 Element of Transaction Cost in Marketing of Agricultural Product Transaction cost Asset specificity Frequency/volume Geographic distribution of farmers Source: Own Construct, (2010) According to Xxxxxxxxxx, the two categories of transaction cost i.e. ex-ante and ex-post transaction cost can be rise from direct opportunity cost and the problem of hidden action which associated with the problem of performance control, performance verification costs, adjustment costs, and bargaining costs in the relationship Buvik, (2002).
Sample 1
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Related to Product Marketing Link

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