Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-26T15:50:04.901Z Has data issue: false hasContentIssue false
  • English
  • Français

U.S. Consumers' Valuation of Quality Attributes in Beef Products

Published online by Cambridge University Press:  26 January 2015

Babatunde O. Abidoye ,
Harun Bulut ,
John D. Lawrence ,
Brian Mennecke  and
Anthony M. Townsend
Babatunde O. Abidoye
Affiliation:
Economic Policy Analysis (ECOPA), Iowa State University, Ames, IA
Harun Bulut
Affiliation:
National Crop Insurance Services, Iowa State University, Ames, IA
John D. Lawrence
Affiliation:
Department of Economics, Iowa State University, Ames, IA
Brian Mennecke
Affiliation:
Department of Management and Information Systems, Iowa State University, Ames, IA
Anthony M. Townsend
Affiliation:
Department of Management and Information Systems, Iowa State University, Ames, IA
Get access Rights & Permissions [Opens in a new window]

Abstract

A sample of U.S. consumers were surveyed in a choice based experiment in the Fall of 2005 and Spring 2006 to elicit Consumers' preferences for quality attributes in beef products. Based on the resulting data, a random coefficients logit model is estimated, and Consumers' willingness to pay for these quality attributes in beef products is obtained. The results indicate that consumers have strong valuation for traceability, grass-fed, and U.S. origin attributes in a standard rib-eye steak and are willing to pay a premium for these attributes.

Keywords

choice experimentconjoint analysisquality attributesrandom parameters logitwillingness to payQ10Q1
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 43 , Issue 1 , February 2011 , pp. 1 - 12
Copyright
Copyright © Southern Agricultural Economics Association 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Banarjee, S., Hudson, D., and Martin, S.W. “Effects of Seed and Farm Characteristics on Cottonseed Choice: A Choice-Based Conjoint Experiment in the Mississippi Delta.” Journal of Agricultural and Applied Economics 39,3(2007):657–69.Google Scholar
Dickinson, D.L., and Bailey, D. “Meat Traceability: Are Consumers U.S. Willing to Pay for it?” Journal of Agricultural and Resource Economics 27,2(2002):348–64.Google Scholar
Grunert, K.G. “What's in a Steak? A Cross-Cultural Study on the Quality Perception of Beef.” Food Quality and Preference 8(1997):157–74.10.1016/S0950-3293(96)00038-9Google Scholar
Hobbs, J.E., Bailey, D., Dickinson, D.L., and Haghiri, M. “Traceability in the Canadian Red Meat Sector: Do Consumers Care?” The Canadian Journal of Economics. Revue Canadienne d'Economique 53(2005):47–65.Google Scholar
Krinsky, L, and Robb, A.L. “On Approximating the Statistical Properties of Elasticities.” The Review of Economics and Statistics 64(1986):715–19.Google Scholar
Krosnick, J.A., Holbrook, A.L., Berent, M.K., Carson, R.T., Hanemann, W.M., Kopp, R.J., Mitchell, R.C., Presser, S., Ruud, P.A., Smith, V.K., Moody, W.R., Green, M.C., and Conaway, M. “The Impact of “No Opinion” Response Options on Data Quality: Non-Attitude Reduction or an Invitation to Satisfice?” Public Opinion Quarterly 66(2002):371–403.Google Scholar
Loureiro, M.L., and Umberger, W.J. “A Choice Experiment Model for Beef: What US Consumer Responses Tell us About Relative Preferences for Food Safety, Country-of-Origin Labeling and Traceability.” Food Policy 32(2007):496–514.10.1016/j.foodpol.2006.11.006Google Scholar
Lusk, J., and Hudson, D. “Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making.” Review of Agricultural Economics 26,2(2004):152–69.10.1111/j.1467-9353.2004.00168.xGoogle Scholar
Lusk, J. and Fox, J.A. “Regional Differences in Consumer Demand for Rib-Eye Steak Attributes.” Mississippi State University Agricultural and Forestry Experiment Station Bulletin 1111. 2001.Google Scholar
Lusk, J.L., Roosen, J., and Fox, J.A. “Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States.” American Journal of Agricultural Economics 85(2003):16–29.10.1111/1467-8276.00100Google Scholar
Lusk, J., and Parker, N. “Consumer Preferences for Amount and Type of Fat in Ground Beef.” Journal of Agricultural and Applied Economics 41,1(2009):75–90.S107407080000256XGoogle Scholar
McFadden, D. “Econometric Models of Probabilistic Choice.” Structural Analysis of Discrete Data with Econometric Applications. Manski, C. and McFadden, D., eds., pp. 198–272. Cambridge: MIT Press, 1981.Google Scholar
Mennecke, B.E., Townsend, A.M., Hayes, D.J., and Lonergan, S.M. “A Study of the Factors that Influence Consumer Attitudes toward Beef Products Using the Conjoint Market Analysis Tool.” Journal of Animal Science 85(2007):2639–59.10.2527/jas.2006-49517526667Google Scholar
Mesias, F.J., Escribano, M., Rodriguez, A. De Ledesma, and Pulido, F. “Consumers' Preferences for Beef in the Spanish Region of Extremadura: A Study Using Conjoint Analysis.” Journal of the Science of Food and Agriculture 85(2005):2487–94.10.1002/jsfa.2283Google Scholar
SSI Web-CBC v5. Manual. Internet site: http://www.sawtoothsoftware.com/products/ssiweb/ (Accessed August 15, 2007).Google Scholar
Thilman, D., Grannis, J., and Sparling, E. “Regional Demand for Natural Beef Products: Urban vs. Rural Willingness to Pay and Target Customers.” Journal of Agribusiness, 2(2003):149–166.Google Scholar
Time. 2006. The Grass-Fed Revolution. Internet site: http://www.time.com/time/magazine/article/0,9171,1200759,00.html (Accessed April 27, 2009).Google Scholar
Train, K. Discrete Choice Methods with Simulation. New York: Cambridge University Press, 2003.Google Scholar
Umberger, W.J., Feuz, D.M., Calkins, CR., and Killinger, K. “U.S. Consumer Preference and Willingness-to-Pay for Domestic Corn-fed Beef versus International Grass-fed Beef Measured through an Experimental Auction.” Agribusiness 18,Autumn(2002):491–504.Google Scholar
Umberger, W.J., Boxali, P.C., and Lacy, R.C. “Role of Credence and Health Information in Determining US Consumers' Willingness-to-Pay for Grass-Finished Beef.” The Australian Journal of Agricultural and Resource Economics 53(2009):603–23.10.1111/j.1467-8489.2009.00466.xGoogle Scholar
United States Department of Agriculture (USDA). Internet site: http://www.usda.gov/wps/portal/usda/knowyourfarmer?navtype=KYF&navid=KYF_MISSION (Accessed June 10, 2010).Google Scholar
USDA-GIPSA. “Implementation of Regulations Required Under Title XI of the Food, Conservation and Energy Act of 2008; Conduct in Violation of the Act.” Federal Register 75(119) (June 22, 2010).AMBIGUOUS (97 citations)Google Scholar