CAEE 5131 - Agricultural Marketing and Price Analysis
Topic Conclusion
The SCP methodology is an adaptation used in the
analysis of the market. The market conditions are influenced by the
social, economic, technological, factor prices and tastes. These
factors influence the method of analysis of markets. Structure consists
of the characteristics of the organization of the market which seems to
influence strategically the nature of competition and the pricing
within a market. It looks into the degree of buyer-seller
concentration, entry conditions, and product differentiation. Conduct
looks at the pattern of behaviour which enterprises follow in adapting
and adjusting to market in which they buy and sell, in particular
methods employed to determine prices, sales promotion, and coordination
policies and the extent of predatory and exclusionary tactics directed
against established rivals and potential entrants. Performance
represents the economic results of structure and conduct, in particular
the relationship between distributive margins and in costs of
production of marketing services.
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This module was developed by Moi University, Department of Economics and Agricultural Resource Management with support from OER Africa and Bill & Mellinda Gates Foundation