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U.S. Consumers' Willingness to Pay for Flavor and Tenderness in Steaks as Determined with an Experimental Auction

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  • Feuz, Dillon M.
  • Umberger, Wendy J.
  • Calkins, Chris R.
  • Sitz, Bethany M.

Abstract

In a study of beef quality, consumers tasted steak samples and participated in an experimental auction to determine their willingness to pay. Steaks differed in marbling, tenderness, country of origin, and aging method. Marbling and tenderness had statistically significant impacts on consumers' palatability ratings for steaks. Tenderness significantly impacted consumers' willingness-to pay values. There appear to be threshold levels of marbling and tenderness, below which consumers discount steaks. Steaks from Australia were rated lower for overall acceptability, and bids were lower than for the U.S. steak samples. Dry-aging methods negatively impacted taste panel ratings and bids.

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  • 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.
    • Handle: RePEc:ags:jlaare:30913
    DOI: 10.22004/ag.econ.30913
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    2. Lee, Ji Yong & Fox, John A., 2016. "The effects of allowing substitutes on bidding behavior in a private value experimental auction," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235900, Agricultural and Applied Economics Association.
    3. 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.
    4. Bett, H.K. & Peters, K.J. & Nwankwo, U.M. & Bokelmann, W., 2013. "Estimating consumer preferences and willingness to pay for the underutilised indigenous chicken products," Food Policy, Elsevier, vol. 41(C), pages 218-225.
    5. Umberger, Wendy J. & Boxall, Peter C. & Lacy, R. Curt, 2009. "Role of credence and health information in determining US consumers’ willingness-to-pay for grass-finished beef," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 1-21.
    6. Peterson, Hikaru H. & Bernard, John C. & Fox, John A. (Sean) & Peterson, Jeffrey M., 2013. "Japanese Consumers' Valuation of Rice and Pork from Domestic, U.S., and Other Origins," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(1), pages 1-14, April.
    7. Li, Xiaogu & Jensen, Kimberly L. & Clark, Christopher D. & Lambert, Dayton M., 2015. "Consumer Willingness-to-Pay for Non-taste Attributes in Beef Products," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196719, Southern Agricultural Economics Association.
    8. Waldman, Kurt B. & Kerr, John M., 2015. "Is Food and Drug Administration policy governing artisan cheese consistent with consumers’ preferences?," Food Policy, Elsevier, vol. 55(C), pages 71-80.
    9. Ge, Candi & Adam, Brian, 2017. "Value-added Traceability: Using a Whole-Chain Traceability System to Transfer Information about Multiple Attributes along a Multi-Stage Beef Supply Chain," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258278, Agricultural and Applied Economics Association.
    10. Canavari, Maurizio & Drichoutis, Andreas C. & Lusk, Jayson L. & Nayga, Rodolfo, 2018. "How to run an experimental auction: A review of recent advances," MPRA Paper 89715, University Library of Munich, Germany.
    11. Wen Lin, 2023. "The effect of product quantity on willingness to pay: A meta‐regression analysis of beef valuation studies," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 646-663, July.
    12. Klink, J. & Langen, N. & Hartmann, M., 2015. "The individual search behaviour of consumers visualized by means of sequence analysis," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    13. Su, Lianfan & Adam, Brian D. & Lusk, Jayson L. & Arthur, Frank, 2011. "A Comparison of Auction and Choice Experiment: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103975, Agricultural and Applied Economics Association.
    14. Ryan Feuz & F. Bailey Norwood & Ranjith Ramanathan, 2020. "Do consumers have an appetite for discolored beef?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 631-652, October.
    15. 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.
    16. Carlberg, Jared G. & Froehlich, Eve J., 2011. "Effects of Elicitation Method on Willingness-to-Pay: Evidence from the Field," Journal of Food Distribution Research, Food Distribution Research Society, vol. 42(2), pages 1-10, July.
    17. Li, Yingzi & Gallardo, R. Karina & McCracken, Vicki A. & Yue, Chengyan & Luby, James & McFerson, James R., 2014. "How does the revelation of previous bid affect new bid?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170439, Agricultural and Applied Economics Association.
    18. Johnson, Myriah & Palma, Marco & Miller, Rhonda & Morrill, Jessie & Anderson, David P. & Sawyer, Jason & Wickersham, Tryon & Richardson, James, 2016. "Consumer Preferences for Sirloin Steak: The Influence of Tasting," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229610, Southern Agricultural Economics Association.
    19. Langena, Nina & Klink, Jeanette & Hartmann, Monika, 2013. "Individualized or non-individualized IDM: What elicits consumer preferences best?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150637, Agricultural and Applied Economics Association.
    20. Lusk, Jayson L. & Norwood, F. Bailey, 2006. "Social Desirability Bias in Willingness-to-Pay for Products with Normative Attributes," 2006 Annual meeting, July 23-26, Long Beach, CA 21428, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Eve J. Froehlich & Jared G. Carlberg & Clement E. Ward, 2009. "Willingness‐to‐Pay for Fresh Brand Name Beef," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 119-137, March.
    22. Karen E. Lewis & Carola Grebitus & Rodolfo M. Nayga Jr, 2016. "The Importance of taste in experimental auctions: consumers’ valuation of calorie and sweetener labeling of soft drinks," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 47-57, January.
    23. Gwin, Lauren & Durham, Catherine A. & Miller, Jason D. & Colonna, Ann, 2012. "Understanding Markets for Grass-Fed Beef: Taste, Price, and Purchase Preferences," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-21.
    24. Klink, Jeanette & Langen, Nina & Hartmann, Monika, 2014. "The Individual Behavior of Consumers Visualized by Means of Sequence Analysis," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187591, German Association of Agricultural Economists (GEWISOLA).
    25. Marcellino, Dana M. & Wilson, Christine A., 2006. "Valuing Farm Financial Information," 2006 Annual meeting, July 23-26, Long Beach, CA 21243, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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