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An Empirical Application Of Laboratory Experimental Auctions In Marketing Research

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  • Menkhaus, Dale J.
  • Borden, George W.
  • Whipple, Glen D.
  • Hoffman, Elizabeth
  • Field, Ray A.

Abstract

A laboratory experimental auction was used to determine factors influencing the relative value consumers place on alternative retail beef packaging. Results indicate information is very important for the successful introduction and marketing of the vacuum skin package. Physical appearance of the beef plays a major role in purchasing decisions by consumers, with fat and shape significantly decreasing the value of beef in the vacuum skin package relative to beef in the overwrapped styrofoam tray package. Experimental economics procedures, when combined with traditional marketing research techniques, can provide useful information for marketing decisions and economic analyses.

Suggested Citation

  • Menkhaus, Dale J. & Borden, George W. & Whipple, Glen D. & Hoffman, Elizabeth & Field, Ray A., 1992. "An Empirical Application Of Laboratory Experimental Auctions In Marketing Research," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-12, July.
    • Handle: RePEc:ags:jlaare:30741
    DOI: 10.22004/ag.econ.30741
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    Cited by:

    1. Ward, Clement E. & Lusk, Jayson L. & Dutton, Jennifer M., 2008. "Implicit Value of Retail Beef Product Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-18.
    2. Feuz, Dillon M. & Umberger, Wendy J. & Calkins, Chris R. & Killinger, Karen M., 2000. "Consumer Preference For Domestic Versus International Beef Steaks," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36385, Western Agricultural Economics Association.
    3. Fisher, Ann & Wheeler, William J. & Zwick, Rami, 1993. "Experimental Methods In Agricultural And Resource Economics: How Useful Are They?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), pages 1-14, October.
    4. Feuz, Dillon M. & Umberger, Wendy J. & Calkins, Chris R. & Sitz, Bethany M., 2004. "U.S. Consumers' Willingness to Pay for Flavor and Tenderness in Steaks as Determined with an Experimental Auction," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-16, December.
    5. Teresa Briz & Andreas Drichoutis & Lisa House, 2015. "Examining projection bias in experimental auctions: the role of hunger and immediate gratification," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-17, December.
    6. Buhr, Brian L. & Hayes, Dermot J. & Shogren, Jason F. & Kliebenstein, James B., 1993. "Valuing Ambiguity: The Case Of Genetically Engineered Growth Enhancers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-10, December.
    7. Schulz, Lee L. & Schroeder, Ted C. & White, Katharine L., 2012. "Value of Beef Steak Branding: Hedonic Analysis of Retail Scanner Data," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 260-273, August.
    8. Jensen, Helen H. & Basiotis, P. Peter, 1993. "Food Safety/Food Quality Data," Emerging Data Issues in Food Demand Analysis, Proceedings of the S216 Workshop, October 1993 11849, Regional Research Project S-278 Food Demand, Nutrition and Consumer Behavior.
    9. Wendy J. Umberger & Dillon M. Feuz & Chris R. Calkins & Karen Killinger-Mann, 2002. "U.S. consumer preference and willingness-to-pay for domestic corn-fed beef versus international grass-fed beef measured through an experimental auction," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 491-504.
    10. Umberger, Wendy J. & Feuz, Dillon M. & Calkins, Chris R. & Kllinger, Karen M., 2000. "The Value Of Beef Flavor: Consumer Willingness-To-Pay For Marbling In Beef Steaks," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36397, Western Agricultural Economics Association.
    11. Fox, John Andrew, 1994. "Essays in the measurement of consumer preferences in experimental auction markets," ISU General Staff Papers 1994010108000012254, Iowa State University, Department of Economics.
    12. Evans, Jason R. & D'Souza, Gerard E. & Collins, Alan R. & Brown, Cheryl & Sperow, Mark, 2011. "Determining Consumer Perceptions of and Willingness to Pay for Appalachian Grass-Fed Beef: An Experimental Economics Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), pages 1-18, August.
    13. Shogren, Jason F., 2006. "Experimental Methods and Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 19, pages 969-1027, Elsevier.
    14. Teresa Briz & Andreas C. Drichoutis & Rodolfo M. Nayga, Jr, 2014. "Detecting false positives in experimental auctions: A case study of projection bias in food consumption," Working Papers 2014-4, Agricultural University of Athens, Department Of Agricultural Economics.
    15. Fox, John A. & Buhr, Brian L. & Shogren, Jason F. & Kliebenstein, James & Hayes, Dermot J., 1995. "Comparison of Preferences for Pork Sandwiches Produced from Animals With and Without Somatotropin Administration (A)," Staff General Research Papers Archive 852, Iowa State University, Department of Economics.
    16. Menkhaus, Dale J., 2001. "Experimental Auctions: New Theoretical Developments And Empirical Findings - Discussion," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36112, Western Agricultural Economics Association.
    17. Menkhaus, Dale J. & Bastian, Christopher T. & Yakunina, Alla V. & Esipov, Victor E., 1997. "Helping Russian Students See the Invisible Hand," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35755, Western Agricultural Economics Association.
    18. Jason F. Shogren & Lusine Tadevosyan, 2011. "Le comportement d'enchérisseur dans une enchère conséquentialiste au second prix," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 13-28.
    19. Demont, Matty & Zossou, Esperance & Rutsaert, Pieter & Ndour, Maimouna & Mele, Paul Van & Verbeke, Wim, 2011. "Willingness to Pay for Enhanced Food Quality: Rice Parboiling in Benin," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114443, European Association of Agricultural Economists.
    20. Anderson, Johan & Vadnjal, Dan & Uhlin, Hans-Erik, 2000. "Moral dimensions of the WTA-WTP disparity: an experimental examination," Ecological Economics, Elsevier, vol. 32(1), pages 153-162, January.

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