Retail coffee pricing dynamics in Argentina

Abstract

Our study examines the impact of diferent attributes on the dynamic pricing of retail cofee in Argentina. Cofee emerges as a special case of an imported commodity with increasing demand in the past years. We focus on weekly price changes given the prevailing infation, a context that alters relative price. The estimations associates price changes with attributes, cost, and time-related variables. At this time–frequency, estimations identify marketing practices prevailing in the sector. We use dynamic panel data models with instrumental variables dealing with endogeneity problems. Signifcant efects are detected in packaging, brand, grain, and variants on cofee pricing by undershooting or overshooting in price adjustments. We also detect weekly, monthly, and cycle efects (including the SARSCoV2 lockdown).