The present research studies the effect of dealer credit on farmer buying behavior and brand loyalty in the agriculture sector of Pakistan through the change in the business strategy of Vital Agri Nutrients (VAN). A hybrid methodology has been applied for this purpose including financial analysis over a span of ten years (2014-2024) along with surveys of 200 farmers and 25 dealers. The former model was profitable (providing 5-10% net margin) because of the role played by the dealers in terms of distribution, financing and trust. However, the introduction of the latter model led to losses in the first year (operating margin decreased to -2.72%). The survey findings show that all small-scale farmers depend upon dealer credit. Moreover, loyalty depends on the availability of credit and not brand preference; 58% customers would change their choice for a discount of 10%. As a result, this study suggests a new strategy called Hybrid D2F 2.0. It retains the dealer credit framework and develops attitudinal loyalty by replicating the trust function of dealers among the farmers.
Tools: SPSS, Meta Business Suite, Microsoft Excel, Structured Questionnaires, Financial Ratio Analysis
Department: Department of Business Studies
Poster
