The Spillover Effect of Marketing Discolored Beef on Consumer Preferences for Nondiscolored Beef

Ryan Feuz, Bailey Norwood () and Ranjith Ramanathan

Journal of Agricultural and Applied Economics, 2020, vol. 52, issue 1, 160-176

Abstract: Consumers prefer bright, cherry-red retail beef. Retailers often mark down the price of discolored beef for quick sale. However, following this practice could result in a net loss of revenue if consumer willingness to pay (WTP) for nondiscolored beef is negatively affected by the presence of discolored beef in the consumer choice set. Through a hypothetical online survey and a controlled in-person experiment, we determine that marketing discolored beef together with nondiscolored beef increases most consumers’ evaluation of, but not their WTP for, nondiscolored beef.

Date: 2020
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