Relationships with market intermediaries: the case of vegetable cluster marketing in Southern Philippines

Effective relationship among partners is a key in strengthening collaborative marketing efforts. One of the collaborative marketing efforts is through clustering of farmer to link into market. This study examined the level of relationship of vegetable cluster farmers with their market intermediaries - cluster and the downstream buyers. A total of 81 vegetables farmers in Southern Philippines were surveyed to determine their relationship level on trust, power-dependence, relationship-specific investments and satisfaction. Comparison between clusters and downstream buyers were made using ANOVA and Welch Test. The study found that farmers have high level of trust to their clusters compared to their downstream buyers. The high level of trust is attributed to assurance of the market, leadership of the clusters, and openness in sharing and information. Results showed that there benefits offered by clustering which were not found in other buyers. This include provision of training and high prices Empirical findings showed farmers in Davao had high trust level with their cluster than Bukidnon and South Cotabato.