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Discrete Choice Modeling of Consumer Preferences for Sustainably Produced Steak and Apples

Author

Listed:
  • Sackett, Hillary M.
  • Shupp, Robert S.
  • Tonsor, Glynn T.

Abstract

"Sustainably produced" food labels have rapidly grown in popularity over the past decade (Batte 2011). Moreover, because there is no government agency overseeing certification of these production methods, consumers are generally confused about the production attributes that may or may not be present in a sustainable food system. This paper analyzes data from a hypothetical choice experiment to better understand consumer purchasing behavior when faced with competing food production attributes such as "organic" and "local". We seek to estimate preferences for "sustainably produced" food products and determine how they may be affected by varying degrees of information about sustainable agricultural systems. Additionally, the willingness to pay measurements estimated in this paper provide insight into the trade-offs perceived between current eco-labeling schemes, and the potential for differentiating "sustainably produced" products from their "organic" and "local" counterparts.

Suggested Citation

  • Sackett, Hillary M. & Shupp, Robert S. & Tonsor, Glynn T., 2012. "Discrete Choice Modeling of Consumer Preferences for Sustainably Produced Steak and Apples," 2012 AAEA/EAAE Food Environment Symposium 123517, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaeafe:123517
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    File URL: http://ageconsearch.umn.edu/record/123517/files/Sackett_DiscreteChoiceModelingofConsumerPreferencesforSustainabilityProducedSteakandApples.pdf
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    References listed on IDEAS

    as
    1. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    2. Glynn T. Tonsor & Ted C. Schroeder & Joost M. E. Pennings & James Mintert, 2009. "Consumer Valuations of Beef Steak Food Safety Enhancement in Canada, Japan, Mexico, and the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 395-416, September.
    3. Katie Abrams & Courtney Meyers & Tracy Irani, 2010. "Naturally confused: consumers’ perceptions of all-natural and organic pork products," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 27(3), pages 365-374, September.
    4. Dentoni, Domenico & Tonsor, Glynn T. & Calantone, Roger J. & Peterson, H. Christopher, 2009. "The Direct and Indirect Effects of ‘Locally Grown’ on Consumers’ Attitudes towards Agri-Food Products," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), pages 1-13, December.
    5. Aadland, David & Caplan, Arthur J., 2006. "Cheap talk reconsidered: New evidence from CVM," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 562-578, August.
    6. Marvin T. Batte, 2010. "Consumer-Driven Changes in Food Marketing Channels: Organics and Sustainable Food Systems in the United States: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 604-605.
    7. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    8. Lee L. Schulz & Glynn T. Tonsor, 2010. "Cow‐Calf Producer Preferences for Voluntary Traceability Systems," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 138-162, February.
    9. Glynn T. Tonsor & Robert S. Shupp, 2011. "Cheap Talk Scripts and Online Choice Experiments: "Looking Beyond the Mean"," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1015-1031.
    10. Craig A. Bond & Dawn Thilmany & Jennifer Keeling Bond, 2008. "Understanding consumer interest in product and process-based attributes for fresh produce," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 231-252.
    11. Jayson L. Lusk & Brian C. Briggeman, 2009. "Food Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 184-196.
    12. Tonsor, Glynn T. & Shupp, Robert, 2009. "Valuations of ‘Sustainably Produced’ Labels on Beef, Tomato, and Apple Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(03), pages 371-383, December.
    13. Yuko Onozaka & Dawn Thilmany Mcfadden, 2011. "Does Local Labeling Complement or Compete with Other Sustainable Labels? A Conjoint Analysis of Direct and Joint Values for Fresh Produce Claim," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 689-702.
    14. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
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    Cited by:

    1. Illichmann, R. & Abdulai, A., 2014. "Analysis of Consumer Preferences and Wilingness-To-Pay for Organic Food Products in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    2. repec:fan:ecaqec:v:html10.3280/ecag2018-001002 is not listed on IDEAS
    3. Jing Xie & Zhifeng Gao & Marilyn Swisher & Xin Zhao, 2016. "Consumers’ preferences for fresh broccolis: interactive effects between country of origin and organic labels," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 181-191, March.

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    Keywords

    Food Consumption/Nutrition/Food Safety;

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