Examining the influence of purchase occasion on consumer preferences for credence attributes in the Californian beef market

Abstract

This study tested the hypothesis that consumers preferences over beef product credence attributes may differ when purchasing for a celebration than for usual personal consumption. Estimation of willingness-to-pay for attributes is compared in a between-subject design across the two occasions. Using attributes present in the Californian market we administer a Discrete Choice Experiment to 866 Californian beef consumers. Results from a Random Parameters Error Components Logit model reveal differences in preferences between occasions. Consumers purchasing for a celebration situation respond differently to particular attributes with the importance of pasture raised and grass-fed attributes elevated in particular, are more price inelastic, substitute towards premium cuts, and exhibit higher WTP overall. This study contributes useful insights applicable to beef producers and retailers in diversifying marketing strategies.