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Published 2004

Read in Norwegian

Publication details

Publication type : Report

Contributors : Alfnes, Frode; Rickertsen, Kyrre; Ueland, Øydis

Number of pages : 33

If you have questions about the publication, you may contact Nofima’s Chief Librarian.

Kjetil Aune
Chief Librarian
kjetil.aune@nofima.no

Summary

Consistency of quality is important for brand loyalty and market shares in consumer markets. Among beef consumers, tenderness is the primary quality attribute. Tenderness cannot be determined by visual inspection and two cuts of beef with identical marbling classification can differ considerably in tenderness. We use an experimental auction to investigate how inconsistencies in tenderness affect consumers’ willingness to pay for beef. We found that the participants assigned a negative value to uncertainty and were risk averse in their beef choices. By categorizing the beef into tenderness classes, we significantly increased the total value of the beef.