Point-of-sale specificwillingness to pay for quality-differentiated beef

Kar Ho Lim, Michael Vassalos, Michael Reed

Research output: Contribution to journalArticle

Abstract

Despite the growing interest of producers and consumers toward grass-fed, local, and organic beef, the supply chain for these products to reach consumers is not always clear-cut. Among the available options are direct-to-consumers and the conventional food supply chain. Although consumers may pay a premium for beef differentiated by quality attributes, the willingness to pay (WTP) difference across point-of-sales is unclear. In this study, we contrast the WTPs for conventional, grass-fed, local, and organic beef by brick-and-mortar supermarkets (B & Ms), farmers' markets, and via online stores. We conduct a choice experiment with a nationwide online sample of American consumers. The findings indicate that compared to B & Ms, more consumers are reluctant to purchase beef from farmers' markets and online outlets. Moreover, the WTP for quality-differentiated attributes varies significantly by the point-of-sales. For most consumers, the downside of online or farmers' markets outweighs the upside of the quality-differentiated attributes sold in those venues.

Original languageEnglish
Article number2560
JournalSustainability (Switzerland)
Volume10
Issue number7
DOIs
Publication statusPublished - 2018 Jul 21
Externally publishedYes

Fingerprint

Beef
sale
Sales
willingness to pay
market
grass
Supply chains
mortar
Food supply
farmer
food supply
sales
Brick
Mortar
attribute
premium
experiment
purchase
producer
supply

Keywords

  • Beefsteak
  • Farmers' market
  • Grass-fed
  • Local
  • Online grocery
  • Organic
  • Willingness to pay

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

Cite this

Point-of-sale specificwillingness to pay for quality-differentiated beef. / Lim, Kar Ho; Vassalos, Michael; Reed, Michael.

In: Sustainability (Switzerland), Vol. 10, No. 7, 2560, 21.07.2018.

Research output: Contribution to journalArticle

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