The effects of experience versus description of attributes on willingness‐to‐pay for beefsteaks. (10th January 2019)

• Record Type: Journal Article
• Authors: Palma, Marco A.; Johnson, Myriah D.; Anderson, David P.
• Is Part Of: Agricultural economics. Volume 50:Number 2(2019)
• Page Start: 129
• Page End: 137
• Publication Date: 2019-01-10
• Subjects: D12 -- Flexible mixing distribution -- Mixed logit -- Random parameters -- Willingness‐to‐pay space; Agriculture -- Economic aspects -- Periodicals; 338.105
• DOI: 10.1111/agec.12471
• Languages: English
• ISSNs: 0169-5150

Abstract

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.