Further, producers may have several options for timing the transfer of ownership. This has certain risk and control aspects, such as who bears costs of spoilage, loss, or price declines, and who pays freight and insurance. Hedging, and credit and financing issues may also be involved. A cash discount or favorable credit terms might be the deciding factor in making a sale. Finally, we consider value and satisfaction from information on products.
Information typically communicates what consumers want to know.
Newspaper ads tell consumers of a special on lettuce, grades might convey the tenderness of a steak, store signs explain whether sweet corn is fresh, and labels list the nutritional contents of a loaf of bread. Typical marketing functions that create information value include advertising and promotion, labelling, packaging and the activities associated with market news and statistics. The value that final consumers place on a product ultimately determines the price that growers will receive. The price, in turn, should be compared against costs to determine if it pays to create the value. An understanding of how the combination of form, location, time, ownership, and information contribute to the satisfaction of buyers can help producers and agribusinesses direct their marketing activities toward a more successful operation.