IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v50y2019i2p129-137.html
   My bibliography  Save this article

The effects of experience versus description of attributes on willingness‐to‐pay for beefsteaks

Author

Listed:
  • Marco A. Palma
  • Myriah D. Johnson
  • David P. Anderson

Abstract

We study the influence of the market environment in the beef industry by setting up an experiment in which the economic setting is changed from a “market purchasing” setting to a “tasting experience repurchasing” setting. In the market purchasing setting, subjects respond to a stated choice experiment for beefsteaks while shopping at a grocery store. This setting appeals more to the homegrown “purchase intention” and the results show that participants place more value on credence attributes rather than sensory attributes. In the experience repurchasing setting, subjects respond to the same discrete choice experiment (DCE), but the task is performed in a tasting facility where participants taste several steak products before making their choices. The experience repurchasing treatment appeals more to repurchase intentions and the results show that participants valued more the physical and sensory attributes of the beefsteaks. The information provided in this article is useful for the beef industry to understand the key drivers of market penetration purchasing based on attribute descriptions and repurchase intention based on experiencing physical and sensory attributes of beefsteaks.

Suggested Citation

  • Marco A. Palma & Myriah D. Johnson & David P. Anderson, 2019. "The effects of experience versus description of attributes on willingness‐to‐pay for beefsteaks," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 129-137, March.
    • Handle: RePEc:bla:agecon:v:50:y:2019:i:2:p:129-137
    DOI: 10.1111/agec.12471
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12471
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.12471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zhifeng Gao & Lisa O. House & Xiaohua Yu, 2010. "Using choice experiments to estimate consumer valuation: the role of experimental design and attribute information loads," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 555-565, November.
    2. Danny Campbell & W. Hutchinson & Riccardo Scarpa, 2008. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 401-417, November.
    3. Claudia Bazzani & Marco A. Palma & Rodolfo M. Nayga, 2018. "On the use of flexible mixing distributions in WTP space: an induced value choice experiment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(2), pages 185-198, April.
    4. Hole, Arne Risa, 2011. "A discrete choice model with endogenous attribute attendance," Economics Letters, Elsevier, vol. 110(3), pages 203-205, March.
    5. Arne Hole & Julie Kolstad, 2012. "Mixed logit estimation of willingness to pay distributions: a comparison of models in preference and WTP space using data from a health-related choice experiment," Empirical Economics, Springer, vol. 42(2), pages 445-469, April.
    6. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    7. Abidoye, Babatunde O. & Bulut, Harun & Lawrence, John D. & Mennecke, Brian & Townsend, Anthony M., 2011. "U.S. Consumers’ Valuation of Quality Attributes in Beef Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(1), pages 1-12, February.
    8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    9. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    10. Julian M. Alston & John W. Freebairn & Jennifer S. James, 2001. "Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 888-902.
    11. Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2006. "Labeling Context and Reference Point Effects in Models of Food Attribute Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1034-1049.
    12. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.
    13. Sims, Christopher A., 2003. "Implications of rational inattention," Journal of Monetary Economics, Elsevier, vol. 50(3), pages 665-690, April.
    14. Jayson L. Lusk & John A. Fox & Ted C. Schroeder & James Mintert & Mohammad Koohmaraie, 2001. "In-Store Valuation of Steak Tenderness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 539-550.
    15. Riccardo Scarpa & John M. Rose, 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 253-282, September.
    16. Michael Woodford, 2012. "Prospect Theory as Efficient Perceptual Distortion," American Economic Review, American Economic Association, vol. 102(3), pages 41-46, May.
    17. Riccardo Scarpa & Mara Thiene & Kenneth Train, 2008. "Utility in Willingness to Pay Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 994-1010.
    18. 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.
    19. Vincenzina Caputo & Riccardo Scarpa & Rodolfo M. Nayga, 2017. "Cue versus independent food attributes: the effect of adding attributes in choice experiments," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(2), pages 211-230.
    20. David L. Ortega & Patrick S. Ward, 2016. "Information processing strategies and framing effects in developing country choice experiments: results from rice farmers in India," Agricultural Economics, International Association of Agricultural Economists, vol. 47(5), pages 493-504, September.
    21. Tenaw G. Abate & Morten R. Mørkbak & Søren B. Olsen, 2018. "Inducing value and institutional learning effects in stated choice experiments using advanced disclosure and instructional choice set treatments," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 339-351, May.
    22. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(4), pages 1-9, January.
    23. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    24. Umberger, Wendy J., 2004. "Will Consumers Pay a Premium for Country-of-Origin Labeled Meat?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 19(4), pages 1-5.
    25. Riccardo Scarpa & Cristiano Franceschinis & Mara Thiene, 2017. "A Monte Carlo Evaluation of the Logit-Mixed Logit under Asymmetry and Multimodality," Working Papers in Economics 17/23, University of Waikato.
    26. Train, Kenneth, 2016. "Mixed logit with a flexible mixing distribution," Journal of choice modelling, Elsevier, vol. 19(C), pages 40-53.
    27. David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, May.
    28. Caputo, Vincenzina & Scarpa, Riccardo & Nayga, Rodolfo M. & Ortega, David L., 2018. "Are preferences for food quality attributes really normally distributed? An analysis using flexible mixing distributions," Journal of choice modelling, Elsevier, vol. 28(C), pages 10-27.
    29. R. W. Ward & C. Lambert, 1993. "Generic Promotion Of Beef: Measuring The Impact Of The Us Beef Checkoff," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 456-465, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Valerie Kilders & Vincenzina Caputo, 2021. "Is Animal Welfare Promoting Hornless Cattle? Assessing Consumer’s Valuation for Milk from Gene‐edited Cows under Different Information Regimes," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 735-759, September.
    2. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    3. Fraser, Iain & Balcombe, Kelvin & Williams, Louis & McSorley, Eugene, 2021. "Preference stability in discrete choice experiments. Some evidence using eye-tracking," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    4. West, Grant H. & Snell, Heather & Kovacs, Kent & Nayga, Rodolfo M., 2020. "Estimation of the preferences for the intertemporal services from groundwater," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304220, Agricultural and Applied Economics Association.
    5. Jones, Michael S. & House, Lisa A. & Gao, Zhifeng, 2015. "Attribute Non-Attendance and Satisficing Behavior in Online Choice Experiments," 2015 International European Forum (144th EAAE Seminar), February 9-13, 2015, Innsbruck-Igls, Austria 206252, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    7. Lang, Ghislaine & Farsi, Mehdi & Lanz, Bruno & Weber, Sylvain, 2021. "Energy efficiency and heating technology investments: Manipulating financial information in a discrete choice experiment," Resource and Energy Economics, Elsevier, vol. 64(C).
    8. Espinosa-Goded, María & Rodriguez-Entrena, Macario & Salazar-Ordóñez, Melania, 2021. "A straightforward diagnostic tool to identify attribute non-attendance in discrete choice experiments," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 211-226.
    9. Seda Erdem & Danny Campbell & Arne Risa Hole, 2015. "Accounting for Attribute‐Level Non‐Attendance in a Health Choice Experiment: Does it Matter?," Health Economics, John Wiley & Sons, Ltd., vol. 24(7), pages 773-789, July.
    10. Ajayi, V. & Reiner, D., 2020. "Consumer Willingness to Pay for Reducing the Environmental Footprint of Green Plastics," Cambridge Working Papers in Economics 20110, Faculty of Economics, University of Cambridge.
    11. Kassie, Girma T. & Zeleke, Fresenbet & Birhanu, Mulugeta Y. & Scarpa, Riccardo, 2020. "Reminder Nudge, Attribute Nonattendance, and Willingness to Pay in a Discrete Choice Experiment," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304208, Agricultural and Applied Economics Association.
    12. Caputo, Vincenzina & Scarpa, Riccardo & Nayga, Rodolfo M. & Ortega, David L., 2018. "Are preferences for food quality attributes really normally distributed? An analysis using flexible mixing distributions," Journal of choice modelling, Elsevier, vol. 28(C), pages 10-27.
    13. Macario Rodríguez‐Entrena & Anastasio J. Villanueva & José A. Gómez‐Limón, 2019. "Unraveling determinants of inferred and stated attribute nonattendance: Effects on farmers’ willingness to accept to join agri‐environmental schemes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 67(1), pages 31-52, March.
    14. Chen, Xuqi & Shen, Meng & Gao, Zhifeng, 2017. "Impact of Intra-respondent Variations in Attribute Attendance on Consumer Preference in Food Choice," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258509, Agricultural and Applied Economics Association.
    15. Richartz, P. Christoph & Abdulai, Awudu & Kornher, Lukas, 2020. "Attribute Non Attendance and Consumer Preferences for Online Food Products in Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(1), March.
    16. Weller, Priska & Elsasser, Peter, 2018. "Preferences for forest structural attributes in Germany – Evidence from a choice experiment," Forest Policy and Economics, Elsevier, vol. 93(C), pages 1-9.
    17. Ana I. Sanjuán‐López & Helena Resano‐Ezcaray, 2020. "Labels for a Local Food Speciality Product: The Case of Saffron," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 778-797, September.
    18. Riccardo Scarpa & Cristiano Franceschinis & Mara Thiene, 2021. "Logit Mixed Logit Under Asymmetry and Multimodality of WTP: A Monte Carlo Evaluation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 643-662, March.
    19. I. G. Ukpong & K. G. Balcombe & I. M. Fraser & F. J. Areal, 2019. "Preferences for Mitigation of the Negative Impacts of the Oil and Gas Industry in the Niger Delta Region of Nigeria," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 811-843, October.
    20. Vincenzina Caputo, 2020. "Does information on food safety affect consumers' acceptance of new food technologies? The case of irradiated beef in South Korea under a new labelling system and across different information regimes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1003-1033, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:50:y:2019:i:2:p:129-137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.