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Differences In U.S. Consumer Preferences For Certified Pork Chops When Facing Branded Vs. Non-Branded Choices

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  • Ubilava, David
  • Foster, Kenneth A.
  • Lusk, Jayson L.
  • Nilsson, Tomas K.H.

Abstract

Consumers' preferences for credence attributes of a product may differ from each other, when facing the choices between branded and/or non-branded products. We test this hypothesis with conditional and mixed logit regression using data obtained by choice experiment surveys. The results suggest that, on average, consumers are willing to pay more for a certification attribute when the product is branded. Additionally, greater variation in consumer willingness-to-pay is observed in the non-branded case. This latter characteristic of the results may represent the increased uncertainty some consumers internalize concerning quality consistency when brand information is not provided. These results have interesting implications for producers, processors, retailers, and policy makers.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6194.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6194

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Keywords: Consumer/Household Economics;

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  1. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
  2. Loureiro, Maria L. & Umberger, Wendy J., 2004. "A Choice Experiment Model For Beef Attributes: What Consumer Preferences Tell Us," 2004 Annual meeting, August 1-4, Denver, CO 19931, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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  9. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl-Johan, 2004. "Preferences With and Without Prices - does the price attribute affect behavior in stated preference surveys?," Working Papers in Economics 150, University of Gothenburg, Department of Economics.
  10. Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  11. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  12. Tomas Nilsson & Ken Foster & Jayson L. Lusk, 2006. "Marketing Opportunities for Certified Pork Chops," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 567-583, December.
  13. Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
  14. Eliza M. Mojduszka & Julie A. Caswell, 2000. "A Test of Nutritional Quality Signaling in Food Markets Prior to Implementation of Mandatory Labeling," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 298-309.
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