@article{Wang:100540,
      recid = {100540},
      author = {Wang, Xi and Curtis, Kynda R. and Moeltner, Klaus},
      title = {Modeling the Impact of New Information on Consumer  Preferences for Specialty Meat Products},
      address = {2011},
      number = {422-2016-26951},
      pages = {44},
      year = {2011},
      abstract = {As the demand for organic and natural food grows in the  U.S., studies show that consumers would and do pay more for  these foods than their traditional counterparts. However,  the question remains as to whether consumers really  understand the differences between organic and natural  products versus common products. The USDA provides an  official definition of organic, but there is no official  definition or certification for natural products. The  general lack of knowledge among consumers concerning  organic and natural products can be misleading and hence,  there is a need for a better understanding of how consumer  pre-existing knowledge and new information regarding  organic and natural products influences consumer purchasing  behavior.

In this study, we research the effect of  providing consumers with information regarding organic and  natural production processes in four separate stages on  their willingness to pay (WTP) for various natural/organic  meat products.  Through the use of survey data collected  in-person during the fall of 2007 Nevada, in which 597  surveys were completed, we examine the impact of consumer  perceived knowledge of organic and natural grass-fed  production processes on their WTP, whether or not new  information/knowledge will modify their WTP, and the degree  of modification across meat types and cuts. Meats examined  vary from high-end to low-end cuts and across various meat  types, such as pork and beef.  The modeling will include a  multinomial probit model to measure WTP and also consider  the modeling issues that arise when updated preferences are  included. 

The results of this study will be important for  researchers looking to model updated consumer preferences.  The purpose of our research is twofold. First, we wish to  observe whether or not advertising and other promotional  methods truly influence consumer demand and willingness to  pay for these specialty meat products. These results will  likely be important to the role of marketing and the way in  which information is provided to consumers on organic and  natural production methods and the potential positive  effects of those methods. Additionally, the paper will show  how consumers purchasing experiences and pre-existing  knowledge might influence their reaction to the same  information.},
      url = {http://ageconsearch.umn.edu/record/100540},
      doi = {https://doi.org/10.22004/ag.econ.100540},
}