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

Kar Ho Lim, Michael Vassalos, Michael Reed

Research output: Contribution to journalArticle

4 Citations (Scopus)

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

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

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