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Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef?

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  • Wendy J. Umberger

    (School of Agriculture, Food and Wine, University of Adelaide, Adelaide, South Australia, Australia)

  • Dawn D. Thilmany McFadden

    (Department of Ag and Resource Economics, Colorado State University, Fort Collins, CO 80523-1172)

  • Amanda R. Smith

    (Department of Agricultural & Applied Economics, University of Georgia-Tifton Campus, Tifton, GA 31793)

Abstract

An area of increasing differentiation among meat products relates to the source-of-origin and types of production methods used to raise the animals. Consumer data collected from a U.S. national online survey was used to estimate the factors helping explain consumers' willingness to purchase and pay a higher premium for two natural and regionally produced beef products: ground beef and USDA (United States Department of Agriculture) Choice rib eye steaks. Consumer preferences for natural and regionally produced beef are shown to be motivated by a combination of perceptions of personal benefits and altruistic factors. Additionally, the results of probit models indicate that the probability a consumer will pay more or less of a premium depends on purchase behavior and shopping location, stated importance of production attributes, awareness and interest in private and civic agricultural issues, in addition to some typical demographic variables such as income. [EconLit Citations: Q130, M130, Q180]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Wendy J. Umberger & Dawn D. Thilmany McFadden & Amanda R. Smith, 2009. "Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef?," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 268-285.
  • Handle: RePEc:wly:agribz:v:25:y:2009:i:2:p:268-285
    DOI: 10.1002/agr.20194
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    References listed on IDEAS

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    Cited by:

    1. Chang, Jae Bong & Lusk, Jayson L., 2009. "Fairness and food choice," Food Policy, Elsevier, vol. 34(6), pages 483-491, December.
    2. Busch, Gesa & Spiller, Achim, 2015. "Real farmer share, perceived farmer share and fair distribution in food chains from a consumers' perspective," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202736, European Association of Agricultural Economists.
    3. Sara Fabbrizzi & Silvio Menghini & Nicola Marinelli, 2014. "The Short Food Supply Chain: A Concrete Example of Sustainability. A Literature Review," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2014(2), pages 189-206.
    4. Marco A. Palma & Alba J. Collart & Christopher J. Chammoun, 2015. "Information Asymmetry in Consumer Perceptions of Quality-Differentiated Food Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 596-612, November.
    5. Kar H. Lim & Wuyang Hu, 2016. "How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 71-88, March.
    6. Gwin, Lauren & Durham, Catherine A. & Miller, Jason D. & Colonna, Ann, 2012. "Understanding Markets for Grass-Fed Beef: Taste, Price, and Purchase Preferences," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.
    7. Umberger, Wendy J. & Boxall, Peter C. & Lacy, R. Curt, 2009. "Role of credence and health information in determining US consumers’ willingness-to-pay for grass-finished beef," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), December.
    8. Ujiie, Kiyokazu, 2011. "The Effect of Altruism on Consumer Behavior in Japan: an Analysis on Rice Consumption using Scanner Data," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116094, European Association of Agricultural Economists.
    9. Wang, Xi & Curtis, Kynda R. & Moeltner, Klaus, 2011. "Modeling the Impact of New Information on Consumer Preferences for Specialty Meat Products," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100540, Australian Agricultural and Resource Economics Society.

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