INFORMATION TECHNOLOGY AND FRESH PRODUCE: A CASE STUDY USING STORE LEVEL SCAN DATA TO ANALYZE SALES

Complications have hampered the adoption of Universal Product Codes (UPCs) for fresh produce until recently. The data being collected using Bar Codes and Price Look-Up Codes (PLUs) have many applications. A case study of carrots demonstrates how analyses of scanning data can show the effects of new items on established products and the customer's willingness to pay for the new products. For precut and organic carrots in a Knoxville area supermarket chain, total carrot volume increased as the new products were introduced while regular (bunch) sales declined sharply. Consumers were willing to pay a premium for the convenience of precut products.