In-store seed purchasing decisions, implications for scaling hybrid maize seed sales through agro-dealers

Abstract

AbstractThe small and medium enterprises that produce improved maize seeds depend on agro-dealers for marketing their hybrids. Yet little is known about how companies interact with agro-dealers for seed marketing and how agro-dealers engage with farmers for in-store decision-making on seed purchases. This study examines farmers' seed purchasing decisions and describes the linkages between companies, agro-dealers and farmers. Data was collected in Chiapas, Mexico in 2019 from farmers after they purchased maize seed in agro-dealer shops (n = 391) and semi-structured interviews with agro-dealers (n = 11) and seed companies (n = 6). Farmers concentrated their purchases on hybrids from multinational companies driven mainly by seed intrinsic attributes (yield, resistance to drought) and quality extrinsic cues (brand and price). Agro-dealers had little influence on farmers' decision-making and their efforts to either engage with seed companies or farmers for the promotion of seeds were low. While agro-dealers were one of the main channels for seed distribution, most promotion activities were developed outside the store and targeted towards end-users. Our review and empirical results show that agro-dealers might be well placed to influence seed purchases decisions, but their role is potentially undermined by product quality cues and out-store marketing stimuli. Besides improving the in-store environment, companies aiming at scaling maize seed sales through agro-dealers need to develop and control seed quality cues, build strong brands, create awareness and loyalty. This requires a pull-push marketing strategy that emphasizes seed customers (farmers) and targets the different stages of the adoption and buying decision-making process.