Affiliation:
1. Purdue University West Lafayette Indiana USA
2. Michigan State University East Lansing Michigan USA
Abstract
AbstractAccurately reflecting expected prices in stated preference designs can be challenging for foods like ribeye steak, which exhibit stark fluctuations in prices across time and space. To address this issue, we introduce a novel price vector design, the reference‐price‐informed (RP‐informed) design, which directly incorporates individual's reference prices into discrete choice experiments. By presenting consumers with posted prices that align with their expected prices, this design reflects real‐world food markets. We test this design in a discrete choice experiment evaluating consumer preferences for “low carbon” beef. Our results project a very small market share of low‐carbon ribeye (3%–5%) with conventional meat taking up most of the market. Our results also show that a reference‐price‐informed design reduces reference price uncertainty and leads to more conservative market share estimates than traditional designs, thus preventing the potential overestimation of product's market potential.
Subject
Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)
Reference72 articles.
1. Animal Welfare Institute.2023.“A Consumer's Guide to Food Labels and Animal Welfare | Animal Welfare Institutehttps://awionline.org/sites/default/files/publication/digital_download/AWI-Consumers-Guide-Food-Labels-Animal-Welfare.pdf
2. Does money talk? — The effect of a monetary attribute on the marginal values in a choice experiment
3. How Production Claims Affect Retail Sales;Beef Checkoff;Drovers.,2021
4. A Comparative Analysis of Reference Price Models