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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

Abstract

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.

Suggested Citation

  • Chanjin Chung & Tracy Boyer & Sungill Han, 2009. "Valuing Quality Attributes and Country of Origin in the Korean Beef Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 682-698.
  • Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:682-698
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    Cited by:

    1. 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.
    2. Tempesta, Tiziano & Vecchiato, Daniel & Djumboung, Danièle Aurelie & Chinazzi, Gianluca, 2. "An analysis of the potential effects of the modification of the Prosecco Protected Designation of Origin: a choice experiment," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L’Informatore Agrario, issue 2.
    3. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    4. Grebitus, Carola & Colson, Gregory & Menapace, Luisa, 2012. "A comparison of hypothetical survey rankings with consumer shopping behavior and product knowledge," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(01), February.
    5. Schnettler, Berta & Sánchez, Mercedes & Orellana, Ligia & Sepúlveda, José, 2013. "Country of origin and ethnocentrism: a review from the perspective of food consumption," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 17.
    6. Jason M. Bienenfeld & Elizabeth R. Botkins & Brian E. Roe & Marvin T. Batte, 2016. "Country of origin labeling for complex supply chains: the case for labeling the location of different supply chain links," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 205-213, March.
    7. 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.
    8. Grebitus, Carola & Colson, Gregory & Menapace, Luisa, 2012. "A comparison of hypothetical survey rankings with consumer shopping behavior and product knowledge," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(01), February.
    9. Klink, Jeanette & Langen, Nina & Hartmann, Monika, 2014. "The Individual Behavior of Consumers Visualized by Means of Sequence Analysis," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187591, German Association of Agricultural Economists (GEWISOLA).
    10. Lee, Sang Hyeon & Lee, Ji Yong & Han, Doo Bong & Nayga, Rodolfo M. Jr., 2014. "Assessing Korean Consumers' Valuation for BSE-Tested and Country of Origin Labeled Beef Products," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 37(3), October.
    11. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    12. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.
    13. Schnettler, Berta & Sánchez, Mercedes & Orellana, Ligia & Sepúlveda, José, 2013. "Country of origin and ethnocentrism: a review from the perspective of food consumption," Economia Agraria, Agrarian Economist Association (AEA), Chile, vol. 17.
    14. repec:ags:jrapmc:122305 is not listed on IDEAS
    15. 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).
    16. 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.

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