J. Anim. Sci. 2005. 83:890-899
© 2005 American Society of Animal Science
Effects of marbling and shear force on consumers’ willingness to pay for beef strip loin steaks
W. J. Platter*,
J. D. Tatum*,1,
K. E. Belk*,
S. R. Koontz
,
P. L. Chapman
and
G. C. Smith*
* Departments of Animal Sciences,
and
Agricultural and Resource Economics, and
and
Statistics, Colorado State University, Fort Collins 80523
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Abstract
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Experimental economic procedures were used to measure the effects of changes in marbling score and Warner-Bratzler shear force (WBSF) value on consumer purchasing behavior and willingness to pay for beef strip loin steaks (n = 541). Consumers were more likely to bid on a steak during the experimental auction if the steak had a high marbling score or low WBSF value. Averaging across all consumers in the study (n = 489), the predicted odds that consumers would submit a nonzero bid were favorable for steaks with a marbling score greater than Modest50 or a WBSF value less than 3.9 kg. Bid prices for steaks were analyzed with respect to changes in steak marbling score, WBSF value, quality grade marketing category classification (Select, Low Choice, Premium Choice, and Prime), and WBSF marketing category classification (very tender, 
3.4 kg; slightly tender, 3.41 to 4.40 kg; slightly tough, 4.41 to 5.40 kg; or very tough, > 5.40 kg). The percentage of bids that were zero was highest (P < 0.05) for Select steaks, intermediate (P < 0.05) for Low Choice steaks, and lower (P <0.05) for Premium Choice or Prime steaks. Steaks in the very tender category had the lowest (P < 0.05) percentage of zero bids, and steaks in the slightly tough and very tough categories had the highest (P < 0.05) percentage of zero bids submitted from "buyers" in the auction. Premium Choice and Prime steaks were valued higher (P < 0.05) than Select steaks by consumers. On average, Premium Choice steaks received a $0.89/kg premium, and Prime steaks received a $2.47/kg premium over the mean bid price for Select steaks. Predicted mean bid prices for steaks decreased by $1.02/kg for each 1 kg increase in WBSF value. On average, steaks in the very tender marketing category received a higher (P < 0.05) bid price than the bid price for steaks in the slightly tender, slightly tough, and very tough categories (+$0.83/kg, +$2.09/kg, and +$2.55/kg, respectively). Mean bid prices for steaks from the slightly tough and very tough categories did not differ (P = 0.184). Compared with the mean bid price for steaks in the slightly tender category, steaks from the slightly tough and very tough categories were discounted (P < 0.05) by $1.26/kg and $1.72/kg, respectively. Results suggest that marbling score and WBSF influence both the probability that consumers will purchase and the price they are willing to pay for strip loin steaks.
Key Words: Beef • Marketing • Prices • Quality • Tenderness • Valuation
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Introduction
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According to Purcell (1999)
, higher prices for live cattle are directly associated with increased demand for beef and higher retail beef prices. A principal beef demand driver is consumer satisfaction, and it is clear that consumers are not always satisfied with beef’s quality, consistency, and/or tenderness (Moeller and Courington, 1998). In an effort to improve the quality of beef products offered to consumers, the National Cattlemen’s Beef Association (NCBA) has encouraged the implementation of total quality management (TQM) beef production systems and the development of technologies that can classify beef carcasses based on tenderness (NCBA, 2002). However, these changes have not been widely adopted by the beef industry, in part because of the financial costs and the uncertainty of rewards associated with their implementation. Reliable estimates of the willingness of consumers to pay for differences in palatability traits of beef, as reflected by differences in marbling score and Warner-Bratzler shear force (WBSF), would provide useful information for estimating the economic incentives for improving the quality and tenderness of beef.
Auction bidding in experimental valuation methods is designed to reveal consumers’ "true preferences" and provides a more reliable estimate of consumers’ willingness to pay than hypothetical willingness-to-pay survey methods (Davis and Holt, 1993; Kagel and Roth, 1995). Experimental auctions create a nonhypothetical market, wherein participants use real money and place bids on real products. Previous studies using experimental market procedures have estimated consumer willingness-to-pay values for steaks classified into two categories based on marbling scores (Umberger et al., 2000) and WBSF (Lusk et al., 2001). This study was conducted to evaluate the differences in consumer purchasing trends and willingness-to-pay values for steaks from a wide range of marbling scores and WBSF values.
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Materials and Methods
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Sample
Detailed descriptions of the cattle management history, experimental procedures through slaughter, and strip loin sample collection were provided in a previous report (Platter et al., 2003a). Because of the low frequency of strip loins from the USDA Standard grade, all data from these samples were removed from the dataset before analysis, resulting in a total of 541 strip loins used for these analyses. Briefly, strip loins (Institutional Meat Purchase Specification No. 180; USDA, 1988) aged for 14 d at 2°C and then frozen at –20°C were fabricated (in the frozen state) into 2.54-cm-thick steaks using a band saw (model 5700, Hobart, Troy, OH). The first steak from the anterior end of each strip loin was identified for WBSF determination, whereas the next two steaks cut from each strip loin were identified for untrained consumer sensory analysis. The remaining steaks from each strip loin were identified and labeled for retail sale during the experimental auction. After completion of the fabrication process, steaks were individually vacuum-packaged, sorted for intended use, and returned to frozen storage (–20°C). Samples used for sensory analysis were stored frozen for approximately 180 d.
Shear Force Determination
Steaks designated for WBSF determination were removed from freezer storage and allowed to thaw for 24 h at 2°C. Steaks were cooked on an electric conveyor grill (model TGB-60, Magikitch’n, Quakertown, PA) for 6 min 35 s at a setting of 176°C to a target internal temperature of 70°C. After cooking, each steak was allowed to equilibrate to room temperature (22°C), and 6 to 10 1.27-cm cores were removed from each steak parallel to the muscle fiber orientation. Each core was sheared once, perpendicular to the muscle fiber orientation, with a Warner-Bratzler shear machine (G-R Electric Manufacturing Co., Manhattan, KS), and peak shear force measurements were recorded and averaged to obtain a single WBSF value for each steak.
Consumer Sensory Panel Methods
The Colorado State Univ. Use of Humans in Research Committee approved consumer panel evaluation procedures used in this study. Branson Research Associates (Bryan, TX) performed extensive demographic analyses of the Denver, CO, metropolitan area to select a test population representative of the age, income, and ethnic background of the U.S. population. Consumers were contacted by telephone and prescreened to ensure that they were at least 18 yr old and consumers of beef products. Four testing sites, located in the Denver metropolitan area (Denver, Lakewood, Arvada, and Littleton), were used to conduct 25 consumer panel sessions that included a total of 489 consumers.
Within a session, paired steaks from 22 different carcasses were selected for sensory evaluation. Steak identification numbers, as well as order of service to consumer panelists, were assigned randomly to each of the 20 consumers per session, with each consumer sampling a total of 11 different steaks. Frozen steaks prepared for consumer panel evaluation were thawed at 2°C for 24 h, and cooked for approximately 15 min on electric grills (model GGR64, Salton, Inc., Mt. Prospect, IL) designed to heat steaks from both sides, simultaneously, to a final internal temperature of 70°C. A Type K thermocouple (Omega Engineering Inc., Stamford, CT) was placed in the geometric center of each steak, and the internal temperature was monitored during cooking using a microprocessor thermometer (model HH21, Omega Engineering Inc.). Steaks were cut into 1.3 cm x 1.3 cm x 2.5 cm portions, covered, and placed in a warming oven (49°C) until consumers were served. One steak from each pair was prepared for serving during the first half of the session, whereas the other matched steak was prepared for serving in the last half of the session to minimize any changes in sensory attributes associated with holding samples for longer periods of time in a warming oven.
At each location, consumers were seated randomly at tables arranged in a circular order in a room containing standard fluorescent lighting. Instructions regarding the structure of the auction ballot and sampling procedures for the steak samples were provided verbally to the consumers in each session. Panelists were provided double-distilled, deionized water and saltless saltine crackers, and were instructed to take a bite of cracker and a drink of water before evaluating each sample to cleanse their palates and to minimize sensory fatigue between samples.
Experimental Economics Procedures
An experimental auction market procedure was used to obtain consumer willingness-to-pay values for differences in marbling score and WBSF of strip loin steaks. Participants were compensated $40 for their participation in the consumer sensory panel. Panelists were instructed that their compensation was only for the evaluation of the organoleptic properties (tenderness, juiciness, flavor, and overall acceptability) of the steak samples. However, during the consumer sensory panels, consumers were asked, without obligation, to participate in a variation of a sealed-bid Vickrey auction for the purchase of steaks identical to the samples they evaluated (Vickrey, 1961). Participants in the auction were asked to submit a bid for an identical 0.454-kg package of frozen steaks (two steaks per package) for each sample they evaluated during the consumer sensory panel. Panelists were not informed of the marbling scores or shear force values of the steaks they evaluated. Consumers who chose to participate in the auction were allowed to submit a nonbid (submit a zero bid) for steaks they perceived to be unacceptable in overall palatability. An average retail price of $14.32/kg was given to the consumers as a reference price for the auction. Panelists were also instructed that there was a minimum acceptable bid price for all steaks; however, because of the possibility this value would influence panelist bidding behavior, the minimum bid price ($7.71/kg) was not disclosed to the participants until after the completion of the auction. The actual market price for packages of steaks was established by actively bidding participants in the auction.
Before each sensory panel session, consumers were informed that there were two 0.454-kg packages of steaks representing each sample evaluated during the session that would be available for purchase during the auction. Therefore, two possible winning auction participants, of the 7 to 10 participants that evaluated each sample, could purchase steaks representing each sample evaluated during each session. Market price for each sample was established at the third highest bid price submitted for each sample. Auction participants who submitted the two highest bids for each sample were required to purchase a package of steaks at the third highest bid price (as long as the price exceeded $7.71/kg). Participants were asked to write their bids on a ballot after evaluating each sample. At the completion of the taste panel session, all panelists were asked to submit their ballots to the taste panel moderator. At any time before submission of the bid ballot to the moderator, panelists could modify their bids on any of the 11 samples they evaluated. After the bid ballots were submitted, auction winners were informed of their purchases, payments were reconciled, and steaks were distributed to consumers.
There are a number of advantages for using experimental auction methods to obtain consumer willingness-to-pay values (Menkhaus et al., 1992; Davis and Holt, 1993; Kagel and Roth, 1995). An experimental auction market simulates a nonhypothetical marketplace because consumers are informed that if they participate in the auction, their bids are considered binding, and they are required to purchase a package of steaks if they are successful bidders. Another benefit of using the Vickery sealed-bid auction is that each consumer submits his/her own perception of value, independent of the bidding behavior of others (Buhr et al., 1993). Additionally, each bid submitted by consumers in the auction is a true estimate of a consumer’s willingness-to-pay for a product, because the structure of the auction does not reward consumers for under, over, or other forms of strategic bidding. For example, suppose a consumer was willing to pay $8.00/kg for a package of steaks and was one of the two highest bidders in the auction. The consumer would be required to purchase a package of steaks, but the price he/she would have to pay for the package would be less than $8.00/kg because the market price for each package of steaks in the auction is established at the third highest bid. In this case, the consumer is satisfied with the market price for the package of steaks because it is below his/her actual willingness-to-pay value. It is not beneficial for a consumer to bid more than his/her actual willingness to pay because he/she may be a successful bidder and may be forced to pay an amount above his/her actual willingness-to-pay value ($8.00/kg). Moreover, submitting a bid lower than their actual willingness-to-pay value is not advantageous to a consumer because the market price could be above his/her bid, but lower than their "true" willingness to pay. In this case, the consumer would not be able to purchase the package of steaks at what he/she perceives as a "good value."
Statistical Methods
Stepwise logistic regression procedures were used to develop equations for the prediction of the probability that consumers would bid on steaks during the auction (SAS Inst., Inc., Cary, NC). Marbling and tenderness were at least partially confounded in this dataset; therefore, any potential interaction between these traits could not be effectively partitioned in these analyses. Separate analyses were conducted to develop equations including either WBSF or marbling score as explanatory variables in the prediction equations. Initial analyses were conducted to gain preliminary insight into associations between consumer demographic information and the likelihood that consumers would bid on steaks in the auction. Consumer demographic information was condensed into fewer categories based on these preliminary analyses. Specifically, information on consumer consumption habits for beef, poultry, pork, fish, and vegetarian meals were reduced to two categories (Light or Heavy) and yearly household income for consumers was reduced to four categories (<$20,000; $20,000 to 39,999; $40,000 to 59,999; or 
$60,000). A consumer demographic variable was included in the equations if the significance of the Wald 
2 statistic for that variable was P < 0.05 with respect to a 2 distribution with 1 df (SAS, 1995). The accuracy of the model prediction was tested against actual observations in the dataset by construction of a two-way classification table using a procedure that approximates an unbiased "jackknifing" method (SAS, 1999).
Of primary interest in this study were the relationships of marbling score or WBSF to the bid prices submitted by consumers in the experimental auction. Marbling score has been a major influence in beef marketing in the United States because it is a primary component of the USDA quality grading system. For analyses of the effect of marbling score on bid prices in this study, steaks were classified into four quality grade marketing (QGMKT) categories typically encountered in U.S. beef trade: Prime, Premium Choice (upper two-thirds Choice), Low Choice, and Select. Boleman et al. (1997), Lusk et al. (2001), and Miller et al. (2001) have used various ranges of WBSF values to classify steaks by tenderness categories and subsequently examine consumer willingness to pay for steaks in these categories. Previous analysis of these data used WBSF value to predict the likelihood of overall acceptance of steaks by consumers (Platter et al., 2003b). Based on the equation reported by Platter et al. (2003b), the probability of overall consumer acceptance of steaks would be 75, 50, and 25% for steaks with mean WBSF values of 3.4, 4.4, and 5.4 kg, respectively. For the current analyses, the effect of WBSF on consumer bid prices for steaks in the experimental auction was evaluated with WBSF values for steaks as a continuous variable, and when steaks were classified into discrete WBSF marketing categories (WBSFMKT) as follows: very tender, 3.4 kg; slightly tender, 3.41 to 4.40 kg; slightly tough, 4.41 to 5.40 kg; or very tough, > 5.40 kg.
Differences in the frequency of zero bids submitted by consumers for steaks in the QGMKT and WBSFMKT categories were tested for significance using 2 analyses (SAS Inst., Inc., Cary, NC). An equation that estimated the probability that consumers would submit a zero bid for a steak using WBSF value as an independent explanatory variable was developed using logistic regression analyses. Linear regression models predicting the average bid prices for steaks were developed using steak marbling score or WBSF value as continuous, explanatory variables in separate analyses. Least squares ANOVA for the mean bid prices for steaks were conducted using models that included either QGMKT or WBSMKT as main effects. When F-tests for these marketing classes were significant (P < 0.05), differences in mean bid prices for steaks were determined using protected LSD tests. For all analyses of bid prices, regression models were developed using the regression procedure, and the ANOVA was conducted using the GLM procedure of SAS.
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Results and Discussion
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Consumer Demographics
A detailed summary of the demographic profile of the participants in the consumer sensory panels in this study was previously reported by Platter et al. (2003a). A summary of socio-economic characteristics of the consumer sample population that may have influenced whether consumers would bid on steaks in the experimental auction are listed in Table 1.
Probability of Consumers Bidding
Previous analyses of the consumer panel data in this study documented the relationship of marbling score and WBSF to the overall acceptance of steaks by consumers (Platter et al., 2003b). Intuitively, increasing consumer acceptance of steaks would have a positive effect on beef demand, but quantifying the influence of differences in marbling score and WBSF on consumer purchasing decisions is essential for positioning beef products in the marketplace. Logistic regression equations predicting the probability that consumers would submit a bid (willing to purchase steaks) during the auction were developed using marbling score, WBSF value, and consumer demographic information (Tables 2 and 3). The logistic regression, or effect coefficients, for the explanatory variables in these equations predicted a change in the log odds that consumers would bid on a 0.454-kg package of steaks, based on either a unit change (e.g., 1 kg of WBSF) or a categorical shift (e.g., male vs. female) for their respective explanatory variable. Effect coefficients for explanatory variables in the logistic regression equations were converted to an odds ratio (Tables 2 and 3), or a percentage of change in probability (Figures 1 and 2) of the predicted event (i.e., consumers submitting a bid) for a unit change or categorical shift in their explanatory variables.
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Table 2. Logistic regression equation for the probability of consumers bidding on steaks in the experimental auction based on marbling score and consumer demographic informationa
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Table 3. Logistic regression equation for the probability of consumers bidding on steaks in the experimental auction based on Warner-Bratzler shear force (WBSF) values and consumer demographic informationa
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Figure 1. Predicted probability of consumers submitting bids on steaks during the experimental auction by mean marbling score (300 = Slight00, 400 = Small00, 500 = Modest00, 600 = Moderate00, and 700 = Slightly abundant00) of steaks. Percent correct is the percentage of observations in the dataset correctly classified by the logistic regression equation. The symbol "P" represents the predicted probability of consumers submitting bids on steaks during the experimental auction. The constant "e" equals the base of the natural logarithm (2.718282).
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Figure 2. Predicted probability of consumers bidding on steaks during the experimental auction by mean Warner-Bratzler shear force value of steaks. Percent correct is the percentage of observations in the dataset correctly classified by the logistic regression equation. The symbol "P" represents the predicted probability of consumers submitting bids on steaks during the experimental auction. The constant "e" equals the base of the natural logarithm (2.718282).
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Effect coefficients for the consumer socioeconomic attributes of age, gender, income class, household size, steak degree of doneness preference, and average consumption levels for beef, poultry, pork, fish, and vegetarian meals were significant (P 0.05) for predicting the probability that consumers would submit a bid during the auction, in the equation that included marbling score as an explanatory variable (Table 2
). These same socioeconomic variables (except level of pork consumption) were significant (P 0.05) for predicting the probability that consumers would submit a bid during the auction in the equation that included WBSF as an explanatory variable (Table 3). In both equations, the estimated probability that a consumer would be willing to purchase a steak during the auction increased if the consumer were older, male, or preferred steaks cooked to a rare to medium degree of doneness. In addition, the estimated probability that a consumer would attempt to purchase steaks during the auction was lower for consumers from a household size of three and for consumers who lived in a household with an annual income of $20,000 to $39,000. Panelists who tended to consume heavy amounts of beef or fish were predicted to be more likely to bid on steaks during the auction than consumers who rarely consumed these products. Conversely, consumers that often consumed poultry or vegetarian meals were predicted to be less likely to attempt to purchase steaks during the auction. In the marbling score equation, panelists who consumed heavy amounts of pork were predicted to be more likely to bid on steaks during the auction. Including the socioeconomic characteristics of the consumer panelists improved the accuracy of the equations predicting the likelihood that consumers would attempt to purchase a steak by 6.8 and 5.8% for the marbling score and WBSF equations, respectively (results not shown). Interestingly, the effect coefficients for marbling score were similar for a single variable (with marbling score as the only explanatory variable) and the multiple-variable regression equation (0.00104 and 0.00109, respectively). Moreover, the effect coefficient for WBSF value for predicting the probability that consumers would bid on steaks during the auction was similar for the single- and multiple-variable equations (–0.2145 vs. –0.2106, respectively). Therefore, the effect of marbling score and WBSF on the predicted probability that consumers would attempt to purchase steaks during the auction was not greatly influenced by including consumer socioeconomic variables in the prediction equations.
Marbling score influenced (P < 0.001) the probability that consumers would be willing to purchase steaks during the experimental auction. Using the prediction from the single-variable marbling score equation (averaging across all consumers), the probability that consumers would be willing to purchase steaks was 0.50 at an approximate marbling score of Modest50 (Figure 1). Therefore, the predicted odds of consumers bidding were one (1:1) for steaks with a marbling score of Modest50. Predicted odds of consumers bidding were decreased to 0.905 (estimated probability of 0.475) for steaks with a marbling score of Small50, and increased to 1.105 (estimated probability of 0.527) for steaks with a marbling score of Moderate50, when adjusted by the odds ratio for marbling score from the single-variable regression equation. These predictions suggest that a marbling score of Modest50 or higher is required to produce favorable odds that consumers would be willing to purchase steaks in the experimental auction, and that the probability of consumers purchasing steaks increases as marbling score increases.
The WBSF value of steaks influenced (P < 0.001) the predicted probability that consumers would submit a bid on steaks during the auction. Based on the single-variable regression equation (averaging across all consumers), the predicted probability that consumers would bid on steaks during the auction was 0.50 when the WBSF value of a steak was 3.9 kg (Figure 2). The predicted odds of consumers bidding were decreased to 0.807 (estimated probability of 0.450) for steaks with a WBSF value of 4.9 kg, and increased to 1.239 (estimated probability of 0.556) for steaks with a WBSF value of 2.9 kg.
Boleman et al. (1997) evaluated how consumer buying trends for top loin steaks were influenced when steaks were sorted into three categories based on their WBSF value (2.27 to 3.58 kg; 4.08 to 5.40 kg; and 5.90 to 7.21 kg). In that study, consumers evaluated steaks from each of the three categories and then were allowed to purchase steaks based on their evaluations. Consumers had two opportunities to purchase steaks during that experiment, and, in each case, consumers purchased a considerably higher percentage of steaks from the category of steaks with the lowest range of WBSF values (Boleman et al., 1997). Our results suggest that WBSF is a valuable indicator of the probability that consumers will attempt to purchase steaks. Furthermore, in our study, a WBSF value of 3.9 kg was required to attain favorable odds that consumers would be willing to purchase steaks.
Refusal to Purchase Steaks
A total of 141 (28.8%) of the 489 consumers in this study chose not to submit a bid on any of the steaks they evaluated during the consumer taste panel. These consumers were classified as "nonbuyers" and were removed from the dataset before analysis of bid prices for steaks. Removing these consumers allowed for analyses of bidding behavior for a segment of consumers who were considered "buyers" because they attempted to purchase steaks on the day of the auction. The "trimmed" dataset represented consumers who submitted at least one bid during the auction.
The frequency of zero bids submitted for steaks by consumers identified as "buyers" during the auction is a direct measurement of refusals to purchase steaks by beef customers. The percentage of zero bids was greatest (P < 0.05) for steaks in the Select grade, intermediate (P < 0.05) for Low Choice steaks, and least (P < 0.05) for Premium Choice and Prime steaks (Table 4). These results suggested that consumers who were interested in buying steaks during the auction were able to perceive differences in value between steaks from different QGMKT categories, and were more likely to refuse to purchase Low Choice and Select steaks than Premium Choice and Prime steaks.
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Table 4. Percentage of bids by consumers that were zero and least squares mean bid price for steaks stratified by USDA quality grade marketing classes
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A logistic regression equation that included WBSF value as the only explanatory variable for predicting the probability that a consumer would submit a zero bid during the auction is presented in Figure 3. This equation indicated that, as WBSF increased, the estimated probability that a consumer would submit a zero bid for steaks also increased. Moreover, the percentage of zero bids was influenced (P < 0.05) by WBSFMKT category. Steaks in the very tender category had the lowest (P < 0.05) percentage of zero bids, whereas steaks in the slightly tough and very tough categories had the highest (P < 0.05) percentage of zero bids (Figure 3). These results indicated that consumers in the auction perceived differences in value between steaks of different WBSFMKT categories, and that steak "buyers" were generally more likely to refuse to buy steaks as the WBSF value of steaks increased.
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Figure 3. Estimated probability of consumers submitting a zero bid on a steak by Warner-Bratzler shear force value and mean percentage of zero bids for steaks by Warner-Bratzler shear force marketing categories, calculated from responses made by consumers that were designated as "buyers" in the experimental auction. The symbol "P" represents the predicted probability of consumers submitting bids on steaks during the experimental auction. The constant "e" equals the base of the natural logarithm (2.718282). x,y,zMeans that do not have a common superscript letter differ, P < 0.05.
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Consumer Bid Prices for Steaks
Marbling score alone accounted for only 3% of the observed variation in average bid price for steaks (results not shown). However, when steaks were pooled and classified into QGMKT categories, based on their marbling and overall maturity scores, significant (P < 0.05) among-category differences in mean bid prices for steaks were observed (Table 4). Mean bid price for steaks in the Low Choice category tended (P = 0.056) to be higher than the mean bid price for steaks in the Select category. Premium Choice and Prime steaks were valued higher (P < 0.05) than Select steaks. On average, Premium Choice steaks received a premium of $0.89/kg, and Prime steaks received a premium of $2.47/kg over the mean bid price received for Select steaks. Umberger et al. (2000) recently conducted an experimental market study that examined consumers’ relative willingness-to-pay values for steaks that differed in quality grade (Premium Choice vs. Select), but were comparable in WBSF value. In that study, there were consumers who preferred the Select steaks (13.7%), consumers who preferred the Premium Choice steaks (28.8%), and consumers who were indifferent between Choice and Select steaks (57.5%). Interestingly, both the group that preferred the Select steaks and the group that preferred the Premium Choice steaks were willing to pay a higher price for steaks of their preference category; however, on average, consumers were willing to pay $0.31/kg more for Premium Choice steaks than for Select steaks. Results of the present study also reflected a tendency for consumers to place a higher value on steaks from higher QGMKT categories.
Boleman et al. (1997) demonstrated that consumers could discriminate between steaks of different tenderness classes and were willing to pay a premium for tenderness. In our study, WBSF values were negatively related to mean bid prices for steaks submitted by consumers in the auction. Predicted mean bid prices for steaks decreased by $1.02/kg for each kilogram increase in WBSF value (Figure 4). Mean bid price for steaks in the very tender WBSFMKT category was higher (P < 0.05) than the mean bid price for steaks in the slightly tender, slightly tough, or very tough categories (+$0.83/kg, +$2.09/kg, and +$2.55/kg, respectively). However, mean bid prices for steaks from the slightly tough and very tough categories did not differ (P = 0.184).
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Figure 4. Least squares mean bid price for steaks stratified by Warner-Bratzler shear force marketing classes and predicted mean bid price for steaks by mean Warner-Bratzler shear force value. x,y,zMeans that do not have a common superscript letter differ, P < 0.05.
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Miller et al. (2001) used stated-choice survey methods to estimate differences in consumer willingness to pay for strip loin steaks classified into four categories based on WBSF value. In their study, estimated premiums for steaks in the tender category were $0.59/kg, $1.08/kg, and $1.23/kg over the mean value of steaks from the intermediate, tough, and toughest categories, respectively (Miller et al., 2001). In our study, steaks from the slightly tough and very tough categories were discounted (P < 0.05) by $1.26/kg and $1.72/kg, respectively, compared with the mean bid price for steaks in the slightly tender category. Results of another study that used an experimental auction method to obtain consumer willingness to pay (Lusk et al., 2001) indicated that consumers, on average, would pay $2.71/kg to upgrade from a "tough" to a "tender" steak. Our results support the concept that consumers can discriminate between steaks that differ in WBSF value or WBSFMKT category and would likely be willing to pay more for steaks with lower WBSF values.
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Implications
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Consumers in this study attached "value" to perceived differences in beef palatability associated with quality grade or Warner-Bratzler shear force. These results suggest that improving product quality and tenderness will increase both consumers’ willingness to purchase and the price they will pay for beef. Thus, if the beef industry wants to command higher prices and create demand for its products, it must focus on improving product performance with respect to eating quality.
1 Correspondence—phone: 970-491-6530; fax: 970-491-0278; e-mail: dtatum{at}lamar.colostate.edu.
Received for publication July 8, 2003.
Accepted for publication January 3, 2005.
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Abstract
Introduction
