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Valuing Quality Attributes and Country of Origin in the Korean Beef Market


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  • Chanjin Chung
  • Tracy Boyer
  • Sungill Han


For beef exporters, one of the important questions in the Korean beef market is why Korean consumers are willing to pay almost three times more for domestic Korean beef than they pay for imported beef. To answer this question, we surveyed 1,000 shoppers in Seoul, Korea, and conducted a conjoint analysis on consumers' willingness to pay (WTP) for country equity of domestic vs. imported beef and quality attributes of marbling, freshness, genetically modified organism (GMO)-free feed ingredients and antibiotic-free production. Among all factors contributing to the price differentials, the most important factor seems to be the country of origin followed by the use of GMO feeds and antibiotics in beef production, marbling grade and freshness. This study finds that Korean consumers value origins of imported beef approximately $14/lb less than the Korean origin. Korean consumers' valuation of beef quality and country of origin differs by some demographic groups: older vs. younger generations, homemakers vs. non-homemakers and consumers who prefer to purchase packaged beef vs. consumers who prefer to purchase butcher shop beef. Our empirical findings suggest that the top priority for beef exporters who wish to increase sales and value of their beef in the Korean market must be to counter Korean consumers' strong ethnocentrism by improving the value of their country of origin. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

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Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 3 ()
Pages: 682-698

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Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:682-698

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Cited by:
  1. Grebitus, Carola & Colson, Gregory & Menapace, Luisa & Bruhn, Maike, 2010. "Who cares about food origin? A comparison of hypothetical survey responses and actual shopping behavior," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61344, Agricultural and Applied Economics Association.
  2. Wageli, Salome & Hamm, Ulrich, 2012. "Consumers‘ Perception of Feed Origin in Organic Food Products Declared as Local," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144965, International European Forum on Innovation and System Dynamics in Food Networks.
  3. Waegeli, Salome & Hamm, Ulrich, 2012. "Wahrnehmung Und Präferenz Für Tierische Ökolebensmittel Produziert Mit Regionalen Futtermitteln," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 138194, German Association of Agricultural Economists (GEWISOLA).
  4. Lee, Sang Hyeon & Lee, Ji Yong & Han, Doo Bong & Nayga, Rodolfo M. Jr, 2013. "Assessing Korean Consumers’ Valuation for BSE Tested and Country of Origin Labeled Beef Products," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149615, Agricultural and Applied Economics Association.
  5. Peterson, Hikaru Hanawa & Burbidge, Linda D., 2012. "Japanese Consumers’ Valuation of U.S. Beef and Pork Products after the Beef Trade Ban," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), April.
  6. Langena, Nina & Klink, Jeanette & Hartmann, Monika, 2013. "Individualized or non-individualized IDM: What elicits consumer preferences best?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150637, Agricultural and Applied Economics Association.
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