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Consumer attitudes toward low stake risk in food markets

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  • Frode Alfnes
  • Kyrre Rickertsen
  • Øydis Ueland

Abstract

Consistency of quality is viewed as important for producers of consumer goods. However, there is no literature testing the importance of quality consistency on consumers' willingness to pay for consumer goods. We use an experimental auction market to investigate how inconsistency in tenderness affects consumers' willingness to pay for beef. We find that most consumers are risk averse with respect to sensory quality. Both the average tenderness and the variance of tenderness affected the consumers' willingness to pay for beef. Reducing the uncertainty of the sensory quality by categorizing the beef into three tenderness classes increased the total value of the beef by 8%.

Suggested Citation

  • Frode Alfnes & Kyrre Rickertsen & Øydis Ueland, 2008. "Consumer attitudes toward low stake risk in food markets," Applied Economics, Taylor & Francis Journals, vol. 40(23), pages 3039-3049.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3039-3049
    DOI: 10.1080/00036840600994062
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    2. Azucena GRACIA & Tiziana DE-MAGISTRIS, 2015. "The role of participants' competitiveness in consumers' valuation for food products using experimental auctions," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 484-491.
    3. Costa-Font, Montserrat & Asquini, Martina, 2023. "The impact of perceived COVID-19 risks, food waste generation and food purchase control on the food security status during the pandemic," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334511, Agricultural Economics Society - AES.
    4. Vecchio, Riccardo & Cavallo, Carla & Del Giudice, Teresa & Caso, Gerarda & Cicia, Gianni, 2023. "Healthier Food Choices Made Easy: a Nudging Experiment in a Restaurant Targeting Millennials," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 14(03), September.

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