Context Specific Factors Affecting Consumer Preferences for Antibiotic and Hormone Use During the Production of Beef in Canada
The market for differentiated meat products is growing based on changes in consumer demand for products with different production attributes. Some consumers are concerned with the use of antibiotics and hormones in the production of beef. This research investigates how the context specific factors of purchase location, information treatment, and product form impact preferences and willingness-to-pay for beef products produced with different levels of antibiotic and hormone use. The data was collected using an online stated preference survey and analyzed using a conditional logit and mixed logit model. The results show that consumers are heterogeneous in their preferences and are willing to pay a premium for beef products produced with reduced or no antibiotic and hormone use. The premiums differed across purchase location, product, and information treatment with important implications for the grocery retail and food service sector.