17. IJASR Developing Mobile Based Agri Retailing MBAR Model For

International Journal of Agricultural
Science and Research (IJASR)

ISSN(P): 2250-0057; ISSN(E): 2321-0087
Vol. 5, Issue 6, Dec 2015, 125- 130
© TJPRC Pvt. Ltd.

DEVELOPING MOBILE BASED AGRI RETAILING (MBAR) MODEL
FOR HIGH VALUE AGRICULTURAL AND LIVESTOCK PRODUCTS

SHOJI LAL BAIRWA 1 , MEERA KUMARI 2 & L. K. MEENA 3

Department of Agricultural Economics, Bihar Agricultural University, Sabour, Bihar, India

ABSTRACT

Mobile based marketing is getting much importance in present dynamic modern time due to easy and wide
accessibility of consumers with low communication cost. Mobile based agri retailing (MBAR) model is refers to the technique
or method of facilitating the retailing of agricultural products to the final consumer at reasonable price along with free home
delivery. The study tries to develop an agri retailing model which comprises three key components i.e. producer/farmer,
agribusiness firm/retailers and consumers. In this, consumer can place their order with detail information (name and
quantity of commodity, delivery time, address etc.) through sms, emails, whatsApp, messenger, phone calling, and video
calling using their mobile and agribusiness firm/retailer received the order and supplies the products to the concerned
customer at their address through sales person. Agribusiness firm or retailers are procuring fruits, vegetables, eggs, milk and
milk products from the farmers, poultry farm and dairy cooperatives respectively. Farmers/producer can either bargain or
contract with the agribusiness firm to fix the price for their produce. MBAR model is a cost effective alternative solution to
time-consuming marketing campaigns. It provides instant deliverability, flexible platform, time saving, and high open and
conversion rate facilities to customers according their convenience along with two way communications to enquiry about
order, to get feedback and to maintain customer’s relationship.

KEYWORDS: MBAR Model, Agri Retailing, Mobile, Farmer, Consumer, Retailing Firm And Employment Opportunities

TRANS

STELLAR

•Journal Publications • Research Consultancy

Received: Oct 22, 2015; Accepted: Oct 29, 2015; Published: Nov 04, 2015 Paper Id.: IJASRDEC201517

INTRODUCTION

Mobile based marketing is getting much importance in present dynamic modem time due to easy and wide
accessibility of consumers with low communication cost. Mobile based marketing involves two or multi-way
communication and promotion of an offer or item between a firm and customers using a mobile device. It is defined
as “the use of the mobile medium as a means of marketing communication” (Karjaluoto, Leppaniemil, 2005). There
are many forms of mobile marketing such as short message service (sms), multimedia message service (mms), in-
game mobile marketing, mobile web marketing, and location-based services in business by using technologies 3G,
EDGE, GPRS, Wi-Fi, SMS, GPS and USSD. Modem mobile devices also provide users apps or tools for chatting
and conversation such as MSN, whatsApp, Skype, Viber and Facebook messenger (Bairwa et al., 2014). Mobile
phone has really changed consumer lifestyles from merely indoor to any places in the world with relatively low
communication costs (Dastagiri, 2009 and Roger, 2013). Jason et al., (2006) reported that many agribusiness firms
are using internet oriented devices in U.S.A. business. Nowadays, mobile technology is growing with high speed
in our country and its importance also increases in the retailing of any type of goods and services in all business
organizations. The traditional model of retailing is based on consumers entering the retailing environment, making
location the primary source of competitive advantage (Rajkumar and Jacob, 2010). Mobile marketing is turning this

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Shoji Lai Bairwa, Meera Kumari & L. K. Meena

paradigm on its head and now retailers entering in the consumer’s environment through the mobile application because the
mobile stays with the consumer anytime and anywhere. In retailing, mobile based shopping created consumer surplus,
decreasing search costs, making it easier and less costly for consumers to access products or services, making prices more
transparent, increased variety of products offered in-store atmosphere (Bakos, 1997, Lynch & Ariely, 2000). Recently,
mobile devices offer opportunities combining information search, use and exchange while shopping in store or
experiencing a product (Chowdhury et al., 2006 and Bairwa el al., 2014). A mobile device is a constant companion to the
consumer, a gateway to a relationship between the consumer and the retailer, making it an ideal supplementary channel for
distance selling and physical retailing (Shankar et al., 2010). Mobile based agri retailing (MBAR) model is refers to the
technique or method of facilitating the retailing of agricultural products to the final consumer at reasonable price and as per
the need of consumers along with free home delivery. This mobile based agri retailing (MBAR) model has great
significance in dynamic and hi tech modern era due to time saving, money saving and customer satisfied in nature. This
agri retailing may take time to establish but it may prove best retailing model for agricultural and livestock products in
present mobile based fast life modern era. Agricultural graduates and agribusiness professionals can adopt MBAR model to
start their own agriventure though entrepreneurship development programme which helps in increasing income level and
employment opportunities in the economy. Thus, the ultimate purpose of the present study is to develop a mobile based
model for the retailing of agricultural products (fruits, vegetables) and livestock products (eggs, milk and milk products) in
cheaper way at the doorstep of consumers.

Conceptual Framework and Mechanism of Mbar Model

MBAR is a business oriented retailing model which can be adopt by any business organization and individual
retailer in order to sell agricultural and livestock products to ultimate consumer through use of mobile phones. Major
components of model are producers, agribusiness firms, retailers, mobile phones, sales persons and consumers. The MBAR
conceptual framework comprises three key components i.e. Producer/farmer, agribusiness firm/retailers and consumers. It
provides linkage between farmers/producers, agribusiness firm/retailers and ultimate consumers of agricultural and
livestock products using mobile phones. The agribusiness firms or retailers can contact directly with farmers to procure the
fruits, vegetables, eggs, milk and other agricultural and livestock produce. In APMC act applicable states, agribusiness firm
or retailer also can purchase fruits and vegetable, eggs and milk products from APMC regulated market, poultry farm and
dairy cooperatives respectively.

Figure 1 indicates that MBAR have three key entities in which agribusiness firm or retailer have both side
linkages with consumers as well as farmers but consumers and farmers have one sided link only with agribusiness retailers.
This model makes a chain by linking following entities:

• Consumer

According to this model, consumers place an order of commodities using his mobile phones (sms, call, messenger,
whatsApp etc.) on agribusiness firm/retailer’s order line or online system before few hours/time of actual requirement
along with order details. Order details include which commodity (fruit, vegetables, eggs, milk or milk products), quantity
of each commodity, time of delivery and address of delivery of commodities. Mode of payment can be fixed either online
or cash on delivery.

Impact Factor (JCC): 4.7987

NAAS Rating: 3.53

Developing Mobile Based Agri Retailing (MBAR) Model for
High Value Agricultural and Livestock Products

127

• Agribusiness firm or retailer

Agribusiness firm/retailer is main pillar of MBAR model because it linked with both consumer and producer
entities. Retailer received the order from the consumers through his online system or phone call along with order details.
Now, he instructs to sale person to collect the order items from cold storage and deliver at consumers address within
stipulated time. Retailer assured consumer with respect to good quality and quantity of commodities at lower cost and time
at their doorstep/home. Retailer performs storage function of marketing to create time utility. He also gets feedback about
his service from the consumer to assured future re -purchasing and customer’s recommendation in order to maintain the
good customer relationship and higher profit level.

• Producer/farmers

The basic raw material supplier of agricultural and livestock produce to retailer is the farmer, poultry farm, dairy
cooperatives. Agribusiness firm/retailer makes direct contact to farmers and procure required quantity of agricultural and
livestock products for storage as well as spot distribution to consumers as per their order. Retailers are procuring eggs, milk
and milk products from the poultry farm and dairy cooperatives respectively. Farmers can either bargain or contract with
the agribusiness firm for price fixation for the procurement of agricultural and livestock produce.

Benefits and Beneficiaries of Mbar Model

MBAR model is a cost effective alternative solution to time-consuming marketing campaigns. It provides instant
deliverability, flexible platform, time saving, and high open and conversion rate facilities to customers according their
convenience. It also facilitates two way communications between consumers and agribusiness retailers to exchange
information, to enquiry about order, to get feedback and to maintain customer’s relationship. Consumer benefits are value
received by the customer by the product utilization compared to customer sacrifices for acquisition of the product
(Dastagiri, 2009). In several studies related to mobile marketing value for consumers, perceived value was not explicitly
measured but the majority of the studies measured benefits and sacrifices components. Studies of consumer mobile
marketing adoption used the Technology Acceptance Model (TAM) by Davis (1989) and Theory of Planned Behaviour
(TBP) by Fishbein and Ajzen (1975). This MBAR model helps to all the entities in different ways such as it increase
profitability of business organization while provides good quality products to consumers at lower prices. Agribusiness
firms needs farmers to procure the agricultural and livestock produce to distribute among nearby households around the
retailer’s supply chain booth as similar by Rajkumar and Jacob (2010) in business models for retailing. The agribusiness

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Shoji Lai Bairwa, Meera Kumari & L. K. Meena

firms or retailers can contact directly to farmers to procure the fruits, vegetables, eggs, milk and other agricultural and
livestock produce. Agribusiness firm or retailer can purchase fruits and vegetable, eggs and milk products from APMC
regulated market, poultry farm and dairy cooperatives respectively. The supply chain of agribusiness firms needs young
talents for the fulfilling the customer’s order which creates employment opportunities for rural and urban youths.
Consumers are benefited with good quality food products on right time at lower price than market prices.

• Benefits to Farmers/Producers

This model ensure the regular and assure sale of farmers produce, reduce forced sale, improve bargaining power
of producer, saving of time and cost (money) of transportation and reduce wastage of agricultural produce. Retailers are
procuring eggs, milk and milk products from the farmers which assured direct marketing of agricultural produce of
farmers. This model also helps in reduction of post-harvest losses of agricultural and livestock produce which helps in
improving farmer’s income level and living standard.

• Benefits to Consumers

This model provides benefits to consumer with the good quality products, products at reasonable prices, instant
and home delivery of products and saving of time and money of purchasing from the market place. Consumers also
benefitted with the supply of all types of items such fruits, vegetables, eggs, milk products from same retailer at any time
and convenience of order quantity as per his requirements (small or large order) and order payment either online or cash on
delivery. In nutshell, it facilitates products inquiry, reliability of products, customer satisfaction and relation, online
payment, cash on delivery, order quantity convenience, free home delivery, and all types’ products from one retailer at any
time at reasonable prices.

• Benefits to retailing firm/retailer

Agribusiness firm/ retailer are the largest beneficiary of this model because MBAR is a business oriented model
for retailing of agricultural and livestock products among consumers. Initially, retailer is less benefitted due to limited size
of customers but as increasing in customer’s size, the profit will goes up and agribusiness retailing chain will established
which generates future cash inflows. The agribusiness retailing firm can be apply this model for supply of agricultural
inputs to farmer at their doorsteps.

• Benefits to society and economy

MBAR model established links producers and consumers with agribusiness retailing firm/retailers and these are
the major drivers of the social system of the any economy. This model gives benefits to all the entities (consumers, farmers
and retailers) involved in the whole chain of retailing of agricultural produce. It also creates employment opportunities;
increase income level of farmers through bargaining power in selling of produce, consumers benefitted with good quality
products at reasonable prices at home delivery. Rural and urban youths can gain employment through establishment of
business of agricultural retailing based on MBAR model in local as well as surrounding areas of their living.

CONCLUSIONS

Recently mobile and online marketing for industrial goods are on boom and increasing with the time due to quick
consumer response. Present study tries to develop an agri retailing model to supply the agricultural and livestock products
to ultimate consumers at reasonable price within stipulate time along with good quality products at their doorsteps. As

Impact Factor (JCC): 4.7987

NAAS Rating: 3.53

Developing Mobile Based Agri Retailing (MBAR) Model for
High Value Agricultural and Livestock Products

129

mobile device users are on the increase, new technologies will be continuously developed and businesses tend to find new
ways to communicate with their target customers. This model is based on the application of mobile phone whereby a
consumer can place his order through sms, phone call, whatsApp, messenger, video call and email to the agribusiness
firm/retailer. Agribusiness firm/retailer received consumers order details on their online system/mobile and supplies the
order commodity in quantity demanded through the sales person in stipulated time period. Thus, MBAR model eliminates
middlemen from the traditional agri supply chain management by the linkage of producers and ultimate consumers through
agribusiness firms/retailers. In a nutshell, the MBAR is an agricultural based business oriented model and has resulted in
new and hi tech ways of agribusiness retailing which reduce cost, time saving, increased profitability of business
organization.

ACKNOWLEDGEMENTS

Authors are highly thankful to the deputy director research, BAU Sabour for their valuable comments and
encouragement in developing this MBAR model and support in submitting a research proposal to director research, BAU
Sabour for testing the consumer acceptability and feasibility of model in Bhagalpur district under state plan scheme.

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Impact Factor (JCC): 4.7987

NAAS Rating: 3.53