Document Type : Research Paper
Authors
Department of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran
Abstract
Keywords
Main Subjects
Extended Abstract
Objectives
In addition to improving market efficiency by increasing competition, Internet markets have contributed significantly to provide demand-oriented production. flower and plant market of Iran has a traditional structure and profit-seeking has added to the complexities of this market. Internet marketing is able to solve this problem and improve the efficiency and productivity of this market.
Methods
In this study, the flower and plant market will be investigated. The data is cross-sectional and related to the customers of both online and offline markets in 2017. The data collection is done by filling questionnaires by both online and offline customers. The main purpose of this study is to calculate the effectiveness of Internet marketing compared to offline. In addition, the logit model is estimated with the dependent variable of customer satisfaction from internet marketing in this market.
Results
The results showed that the transaction costs for customers in other provinces were higher than Tehran and Alborz in both markets and in the online market, were lower than the traditional market. Consequently, Internet marketing surplus in other provinces (except Tehran and Alborz) was higher and the transaction cost share from product prices was lower. According to the above results, internet market development will lead to improve the effectiveness of the flower and plant market. As a result of the logit model, incentives for cash discounts, social media pages (Instagram), easier online shopping, gender and regional effects have become significant.
Discussion
In the logit model, the factors affecting customer satisfaction with online flower shopping were estimated. As a result of the significance of the cash discounts incentives variable, suggested that an amount must be considered as a discount, especially for customers who have made more frequent purchases. Supporting electronic business will ultimately lead to a reduction in consumer costs and at the same time a boom in the domestic product market.
All authors contributed equally to the conceptualization of the article and writing of the original and subsequent drafts.
Data available on request from the authors.
The authors would like to express their sincere appreciation to Montakhab Greenhouse for their valuable cooperation and support throughout the data collection process.
The study was approved by the Ethics Committee of the University of Tehran (Ethical code: IR.UT.RES.2024.500). The authors avoided data fabrication, falsification, plagiarism, and misconduct.
The author declares no conflict of interest.
The author declares no conflict of interest.
REFERENCES
Agheli, L., Sahabi, B., & Solhkhah, N. (2017). The impact of transaction cost on financial development in selected OPEC members. Queensland Journal of Educational Research, 17(1), 95-120. (In Persian)
Amiri, A., Hosseini, M., Jafari, S., & Aboali, M. (2016). Factors influencing the adoption of e-commerce in the Iranian agricultural sector. Organizational Culture Management, 14(2), 541-565. (In Persian)
Briggeman, B. C., & Whitacre. B. E. (2008). Farming and the internet: Factors affecting input purchases online and reasons for non-adoption. In: Southern Agricultural Economics Association, Annual Meeting. Dallas, Texas.
Coase, R. H. (1937). The nature of the firm. Economical, 4(16), 386-405.
Cochran, W. G. (1963). Sampling Techniques. 2nd Ed. New York. J. Wiley and Sons.
Fathollahi, J., Najafi, S. M. B., & Alinajad, Z. (2016). Measuring transaction costs in the economy of Iran case study: Goodwill of retail businesses in Kermanshah. Queensland Journal of Educational Research, 15(4), 75-98. (In Persian)
Hill, R., Griffiths, W., & Lim, G. (2008). Principles of Econometrics (third ed.). New York: John Wiley & Sons, Inc.
Hoge, S., & Cecil. C. (1993). The electronic marketing manual: integrating electronic media into your marketing campaign. American Bar Association, 22, 175-185.
Hosseini, S., Khaledi, M., Ghorbani M., & Hassanpour, E. (2010). Assessing the transaction costs of agricultural bank’ credits in rural Iran. Agricultural Economics & Development, 23(2), 36-45. (In Persian)
Judge, G., Hill, C., Griffiths, W., Lee, T., & Lutkepol. H. (1988). Introduction to the theory and practice of econometrics. New York: Wiley.
Kotler, P., Bowen, J. & Makens, J. (2006), Marketing for Hospitality and Tourism, 4th ed, Upper Saddle River, New Jersey: Pearson- Prentice Hall.
Krishnamurthy, S. (2006). Introducing e-mark plan: A practical methodology to plan e-marketing activities. Business Horizons, 49(1), 51-60.
Motevasseli, M., Nikoonesbati, A., & Abniki, M. (2011). Different approaches toward transaction costs and their indications on Iran’s business and economy environment. Planning and Budgeting, 15(2), 3-33. (In Persian)
Nikouei, A. R., Rafati, M., & Bakhshodeh. M. (2010). Study of market structure and marketing system of flowers and ornamental plants in Iran: A case study of Cut-Rose flower market in Esfahan. Economics and Agriculture Development, 23(2), 135-147. (In Persian)
Prakosa, A., & Sumantika, A. (2021). An Analysis of Online Shoppers’ Acceptance and Trust toward Electronic Marketplace using TAM Model. In Journal of Physics: Conference Series (Vol. 1823, No. 1, p. 012008). IOP Publishing.
Sadeghi, H., Vafaei Yeganeh, R., & Aghanaseri. M. (2012). A measurement and analysis on transaction costs in Iranian economy. Majlis and Rahbord, 19(71), 5-37. (In Persian)
Sultan, H., Rachmina, D., & Fariyanti, A. (2021). Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java. AGRARIS: Journal of Agribusiness and Rural Development Research, 7(1), 111-126.
Tchipev, P. D. (2003). The firm as transaction cost economics concept. National scientific conference on political economy. Proceeding’s volume, Ruse: publishing center of the Ruse University, 17 Aug.
Teo, T. S. H. (2005). Usage and effectiveness of online marketing tools among Business-to-Consumer (B2C) firms in Singapore. International journal of information management, 25(3), 203-213.
Williamson, O. E. (1979). Transaction-cost economics: the governance of contractual relations. The journal of Law and Economics, 22(2), 233-261.
Yousef, A. (2017). Transaction costs: A conceptual framework. International Journal of Engineering and Management Sciences, 2(3), 131-139.
)