Consumer Preferences for Fresh Food Items with Multiple Quality Attributes: Evidence from an Experimental Auction of Pork Chops

Abstract

This study illustrates an application of experimental auction methods, using both experimental economics and experimental design, to evaluate consumer perceptions and willingness to pay (WTP) for fresh pork chops. We test and reject hypotheses that (a) market prices and consumers' WTP are unaffected by the level of attributes embodied in the pork chops, (b) appearance (based on photographs or actual product) and actual taste are equally good sources of consumer information, and (c) consumers are consistent in their preferences for fresh pork attributes. A major conclusion is that predicting consumer demand for fresh pork (or any fresh food) based on appearance without tasting is unproductive. Copyright 1996, Oxford University Press.

Does Taste Beat Food Safety? Evidence From the “Pêra Rocha” Case in Portugal

“…A lot of research studies have used EM to assess consumers' WTP for different quality attributes. Examples of EM studies that evaluate search quality attributes are the research of Melton et al (1996) that analysed WTP for fresh pork shops and concluded that attributes like appearance affect WTP. Also, the study of Lange et al (2002) that used EM to reveal the WTP for Champagnes presented with different external information.…”

“…Consumer could give a different importance to taste because it has now been experienced, while healthiness is still intangible and information-based. Research in experimental markets as the work of Melton et al (1996) suggested that measure consumer preferences for any fresh food based on appearance without tasting is unrealistic. With the same point of view, Hobbs et al (2006) used an experimental auction to evaluate WTP for two different kinds of meat with different quality assurances.…”

Determining South African consumers’ willingness to pay for certified Karoo lamb: An application of an experimental auction

“…Once all the pre-surveys were collected, the random nth-price auction began. A practice auction with blocks of fudge was held before the actual auction for Karoo lamb was conducted in order to allow participants to get some practice using the mechanism (similar to Melton, Huffman, Shogren & Fox, 1996;Cunningham, 2003;Giamalva, Bailey & Redrern, 1997).…”

“…The reason for repeated rounds is that participants only realize that it is the best strategy to bid truthfully after a few rounds of bidding (Melton, Huffman, Shogren, Fox, 1996). Repeated rounds were done is most of the experimental literature analysed for this study (Melton, Huffman, Shogren, & Fox, 1996;Giamalva, Bailey & Redfern, 1997;Cunningham, 2003;Noussair, Robin & Ruffieux, 2004). …”

“…Product attributes are a quality or feature of a product. Melton, Huffman, Shogren & Fox (1996) states that consumers will value similar products differently based on slight differences in product attributes.…”