U.S. Consumers’ Willingness to Pay for Flavor and Tenderness in Steaks as Determined with an Experimental Auction
By: Feuz, Dillon M.; Umberger, Wendy J.; Calkins, Chris R.; Sitz, Bethany M.
Feuz, Dillon M.; Umberger, Wendy J.; Calkins, Chris R.; Sitz, Bethany M., U.S. Consumers' Willingness to Pay for Flavor and Tenderness in Steaks as Determined with an Experimental Auction, Journal of Agricultural and Resource Economics, Volume 29, Issue 3, December 2004, Pages 501-516
In a study of beef quality, consumers tasted steak samples and participated in an experimental auction to determine their willingness to pay. Steaks differed in marbling, tenderness, country of origin, and aging method. Marbling and tenderness had statistically significant impacts on consumers' palatability ratings for steaks. Tenderness significantly impacted consumers' willingness-to pay values. There appear to be threshold levels of marbling and tenderness, below which consumers discount steaks. Steaks from Australia were rated lower for overall acceptability, and bids were lower than for the U.S. steak samples. Dry-aging methods negatively impacted taste panel ratings and bids.