ISHS Acta Horticulturae 794: II International Symposium on Improving the Performance of Supply Chains in the Transitional Economies
FARMER'S DECISION-MAKING PROCESS FOR PURCHASING AGRICULTURAL EQUIPMENT: AN INSIGHT INTO THE NEW RUSSIAN ECONOMY |
| Authors: | K. Koblik, L.K. Aguiar |
| Keywords: | buying behaviour, transitional economies, machinery, horticulture |
| Abstract:
This paper explores Russian potato farmers’ decision-making process with regard to the purchase of agricultural machinery. The purchase of agricultural equipment is a decision of some magnitude that is often regarded as high involvement. Decision-making is not a guessing game and successful farmers’ think of new, more effective ways of doing things. Decision-making also helps to solve problems. In January 2007, some 300 questionnaires were posted to potato farmers. Information gathered from the survey was cross-checked using semi-structured interviews with five representatives of Russian and European agricultural machinery companies during the AgroTechnology trade fair in Moscow in February 2007. Non-parametric statistical tests were conducted to check for possible correlations. Taking into account the stages of the buying decision as proposed by Kotler (1991), a decision tree was drawn identifying possible outcomes. The steps Russian farmers take when deciding to purchase machinery are complex. The main motivation to buy is to replace obsolete machinery, increase margins and profit. Personal relationship with dealers, technical expertise of the salesperson, availability of credit, participation in field days and trade fairs seem to be the key motivators. | |
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