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Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef?

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  • Wendy J. Umberger

    (School of Agriculture, Food and Wine, University of Adelaide, Adelaide, South Australia, Australia)

  • Dawn D. Thilmany McFadden

    (Department of Ag and Resource Economics, Colorado State University, Fort Collins, CO 80523-1172)

  • Amanda R. Smith

    (Department of Agricultural & Applied Economics, University of Georgia-Tifton Campus, Tifton, GA 31793)

Abstract

An area of increasing differentiation among meat products relates to the source-of-origin and types of production methods used to raise the animals. Consumer data collected from a U.S. national online survey was used to estimate the factors helping explain consumers' willingness to purchase and pay a higher premium for two natural and regionally produced beef products: ground beef and USDA (United States Department of Agriculture) Choice rib eye steaks. Consumer preferences for natural and regionally produced beef are shown to be motivated by a combination of perceptions of personal benefits and altruistic factors. Additionally, the results of probit models indicate that the probability a consumer will pay more or less of a premium depends on purchase behavior and shopping location, stated importance of production attributes, awareness and interest in private and civic agricultural issues, in addition to some typical demographic variables such as income. [EconLit Citations: Q130, M130, Q180]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Wendy J. Umberger & Dawn D. Thilmany McFadden & Amanda R. Smith, 2009. "Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef?," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 268-285.
    • Handle: RePEc:wly:agribz:v:25:y:2009:i:2:p:268-285
    DOI: 10.1002/agr.20194
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