Journal of Agricultural and Applied Economics
Cambridge University Press
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Consumers prefer bright, cherry-red retail beef. Retailers often mark down the price of discolored beef for quick sale. However, following this practice could result in a net loss of revenue if consumer willingness to pay (WTP) for nondiscolored beef is negatively affected by the presence of discolored beef in the consumer choice set. Through a hypothetical online survey and a controlled in-person experiment, we determine that marketing discolored beef together with nondiscolored beef increases most consumers’ evaluation of, but not their WTP for, nondiscolored beef.
Feuz R, Norwood FB, and Ramanathan R (2020). The Spillover Effect of Marketing Discolored Beef on Consumer Preferences for Nondiscolored Beef. Journal of Agricultural and Applied Economics 52, 160–176. https:// doi.org/10.1017/aae.2019.39