Journal of Agricultural and Resource Economics
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Given general social resistance to agricultural biotechnology, viability of novel applications that improve animal welfare depends on market acceptance. Using a Becker–DeGroot–Marschak mechanism, we elicit willingness to pay (WTP) for pork produced using two animal welfare-improving biotechnologies. To evaluate U.S. consumer demand for these technologies, we model WTP premiums using a seemingly unrelated equations approach. Results indicate that negative attitudes toward biotechnology outweigh animal welfare benefits, though products still garner a premium due to heterogeneity in preferences. Findings support policies that balance the costs of regulatory approval with observed market acceptance and policies that accommodate animal welfare demands.
A major concern for international marketers is how products will be received by foreign consumers in other markets. This study uses choice modeling to assess Chinese consumer preferences for pork and evaluate the potential demand for U.S. pork in the cities of Guangzhou and Hong Kong. We find that differences in preferences for domestic versus imported pork can be explained, in part, by consumers’ level of patriotism. Marketing pork with a food safety claim can increase market demand for U.S. products, and accounting for differences in nationalistic attitudes can aid marketing efforts.
A hypothetical choice experiment was conducted to determine consumers’ willingness to pay for three verified production practice attributes (pasture access, antibiotic use, and individual crates/stalls) in smoked ham and ham lunchmeat. These attributes were verified by the USDA Process Verified Program (PVP), a retailer, or the pork industry. Willingness to pay for verified attributes varied across attributes and verifying entity for both products. Consumers were willing to pay the most for attributes verified by the USDA-PVP. No statistical differences, relative to the product price level, were found across products for the same attribute-verifier combination.
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