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Do Consumers have an Appetite for Discolored Beef

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  • Feuz, Ryan
  • Norwood, F. Bailey
  • Ramanathan, Ranjith

Abstract

Consumers prefer beef to be bright, cherry red in color. As beef becomes discolored, consumers may perceive it to be unwholesome, reducing their willingness‐to‐pay (WTP). This study uses a choice experiment in an online survey to measure how discoloration affects consumer WTP for beef steak and ground beef. A cheap talk script combined with a trap question designed to simultaneously reduce hypothetical bias as well as measurement error caused by inattentive respondents is included in the survey. Results indicate even slightly discolored beef may require at least a 50% discount before the average consumer will purchase it. However, through latent class analysis, consumer preferences for discolored steak and ground beef are found to be heterogeneous with several latent classes identified. Thus, if the quantity of discolored meat to be sold is low, retailers can sell discolored meat at smaller discounts to consumers in one of the subgroups with less discriminating discoloration preferences [EconLit Citations: D10, D12, Q18].
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  • Feuz, Ryan & Norwood, F. Bailey & Ramanathan, Ranjith, 2019. "Do Consumers have an Appetite for Discolored Beef," 2019 Annual Meeting, February 2-5, 2019, Birmingham, Alabama 284283, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea19:284283
    DOI: 10.22004/ag.econ.284283
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    2. Arif Yustian Maulana Noor & Hery Toiba & Budi Setiawan & Abdul Wahib Muhaimin & Adhitya Marendra Kiloes, 2022. "The application of choice experiments in a study on consumer preference for agri-food products: A literature review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(5), pages 189-197.

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