Determining characteristics of competitiveness of agro-food products in the conditions of globalization (აგროსასურსათო პროდუქტების კონკურენტუნარიანობის განმსაზღვრელი მახასიათებლები გლობალიზაციის პირობებში)

Abstract

This paper discusses the determinants of product competitiveness and the Doctor of Economics views of researchers in this area. The author draws conclusions about what can be the key to the competitiveness of agri-food products, opinions are supported by the results of quantitative and qualitative research: A total of 1,200 consumers were interviewed. The survey was conducted by sending a questionnaire through digital channels. 74% of consumers named quality as the main characteristic of competitiveness. The price comes only in second and it is chosen by 21% of consumers. With increasing age and income, the importance of quality increases. It was found out that service and packaging are not crucial for consumers in the process of selecting agri-food products. In addition, it should be noted, that for 42% of respondents are more or less impacted by advertising for agri-food products. Thus, producers need to devote a large portion of their resources to quality improvement, while the state should create a favorable environment for this. Research has shown that in general, quality is the main factor for choosing one of two similar products. Similarly, consumers' choice in purchasing agri-food products is largely determined by its quality and subsequent personal experience. So, the Georgian consumer is in the transition stage of the 2nd and 3rd levels of competitiveness Pyramid. The analysis of customer responses categorized by age groups revealed an interesting result. In particular, as the age of the buyer increases, quality plays a major role in the decision to purchase an agri-food product. Consequently, price dependence decreases. In the age categories of 55-64 years old and 65 years old and over, the price is replaced by taste characteristics and utility. When the answers were grouped based on average monthly income, similar results were received, with the increase in income, quality becomes the main factor to purchase the product. Price becomes relatively crucial for low-income respondents. Consumers evaluate Georgian agro-food products as having average competitiveness. Thus, it is important for manufacturers to focus on improving the quality of their products. However, competitiveness cannot be achieved at the product level unless certain preconditions are created at the state level to ensure it. The conducted research will give an opportunity to the interested persons to introduce the peculiarities of product competitiveness in the agro-food market of Georgia and help them to determine the right production strategy. Thus, the study contains few limitations, which should be solved in the future researches. Limitations are following: the sample size was limited by 1200 respondents. More significant number of consumers can be included into the study in the future. The online survey method was the only method used, which should be further combined with field and experimental investigations.