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Determining South African consumers’ willingness to pay for certified Karoo lamb: An application of an experimental auction

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  • K. van Zyl
  • H. Vermeulen
  • J.F. Kirsten

Abstract

Changes in the features of food demand and consumption have moved from the mass consumption model towards an increasing qualitative differentiation of products and demand. This movement towards addressing consumers’ demand for food products with more advanced quality attributes has led to increasingly complex food qualification processes and a proliferation of standards. Accompanying these changes in the agro-food system is a growing consumer concern for food safety and quality. One important attribute of “quality” is the origin of a food product. This paper focuses on lamb originating from the Karoo region of South Africa and tests consumers’ willingness to pay a premium for this specific origin attribute of the product. A random nth price auction was conducted to obtain willingness to pay estimates for a premium on a 500g packet of certified Karoo lamb loin chops. Various demographic and behavioural variables were linked to participants’ individual bids in order to determine the possible influence of these variables on participants’ bidding behaviour. A general positive willingness to pay for certified Karoo lamb was observed, with an average premium of R21.80/ kg recorded for loin chops. The impact of additional information was clearly visible as bids increased substantially after additional information regarding the product was introduced.

Suggested Citation

  • K. van Zyl & H. Vermeulen & J.F. Kirsten, 2013. "Determining South African consumers’ willingness to pay for certified Karoo lamb: An application of an experimental auction," Agrekon, Taylor & Francis Journals, vol. 52(4), pages 1-20, December.
    • Handle: RePEc:taf:ragrxx:v:52:y:2013:i:4:p:1-20
    DOI: 10.1080/03031853.2013.847030
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    Cited by:

    1. Kirsten, Johann & Vermeulen, Hes & van Zyl, Karlien & du Rand, Gerrie & du Plessis, Henrietta & Weissnar, Tessa, 2017. "Do South African Consumers have an Appetite for an Origin-based Certification System for Meat Products? A Synthesis of Studies on Perceptions, Preferences and Experiments," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(1), pages 1-18, January.
    2. van der Merwe, Melissa & Kirsten, Johann F. & Trienekens, Jacques H., 2018. "The Karoo Meat of Origin certification scheme: a silver bullet?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(5).
    3. Donoghue, Suné & Wilken-Jonker, Ina & Steffens, Francois E. & Kirsten, Johann F., 2021. "South African consumers' willingness to pay a premium for Karoo Lamb: The influence of subjective and objective knowledge, label information and demographics," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    4. Balogh, Péter & Török, Áron & Czine, Péter & Horváth, Péter, 2020. "A fogyasztói magatartás elemzése feltételes választási modellekkel - a mangalicakolbász példáján [Analysing consumer behaviour with conditional choice models, with Mangalica sausage as an example]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 474-494.

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