U.S. consumer preference and willingness-to-pay for domestic corn-fed beef versus international grass-fed beef measured through an experimental auction

Wendy Umberger, Dillon M. Feuz, Chris R. Calkins and Karen Killinger-Mann
Additional contact information
Dillon M. Feuz: Associate Professor, Panhandle Research and Extension Center, University of Nebraska, 4502 Avenue I, Scottsbluff, NE 69361. E-mail: dfeuz@unl.edu, Postal: Associate Professor, Panhandle Research and Extension Center, University of Nebraska, 4502 Avenue I, Scottsbluff, NE 69361. E-mail: dfeuz@unl.edu
Chris R. Calkins: Professor, Department of Animal Science, University of Nebraska-Lincoln, Animal Science Complex A213, Lincoln, NE 68583-0908., E-mail: ccalkins1@unl.edu, Postal: Professor, Department of Animal Science, University of Nebraska-Lincoln, Animal Science Complex A213, Lincoln, NE 68583-0908., E-mail: ccalkins1@unl.edu
Karen Killinger-Mann: Research Assistant, Department of Animal Science and Food Technology, Texas Tech University, Food Tech 204F, Lubbock, TX 79404., E-mail: kkillinger@ttu.edu, Postal: Research Assistant, Department of Animal Science and Food Technology, Texas Tech University, Food Tech 204F, Lubbock, TX 79404., E-mail: kkillinger@ttu.edu

Agribusiness, 2002, vol. 18, issue 4, 491-504

Abstract: Experimental auction procedures were used to measure Chicago and San Francisco consumers' willingness-to-pay for beef flavor from domestic, corn-fed beef versus Argentine, grass-fed beef. Based on taste panel rankings and bid differentials between paired steak samples, consumers were grouped into one of three beef-preference categories: corn-fed beef preferring, grass-fed beef preferring, and indifferent. A multinomial logit model and regression analysis were used to identify consumers who prefer a particular flavor of beef. On average, consumers were willing to pay a 30.6% premium for corn-fed beef. Sixty-two percent of the participants were willing to pay an average premium of $1.61 more per pound for the corn-fed beef, 23% of the consumers were willing to pay a premium of $1.36 more per pound for the grass-fed beef, only 15% of the consumers were indifferent. The results have important implications for country-of-origin labeling of beef products, as well as niche marketing of corn-fed and grass-fed beef. [EconLit citations: L110, L660, Q130]. © 2002 Wiley Periodicals, Inc.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:18:y:2002:i:4:p:491-504

DOI: 10.1002/agr.10034

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