Studies Show Consumers Will Pay More For Beef If They Know More.
Question! Would you pay more for a steak if you knew the breed of cattle or even the ranch where the animal was raised. Given our tough economic times the results of two separate studies are pretty darn interesting. So stay tuned for Open Range, I’m Susan Allen. Fascinating new research on how most of us elect to order steaks when dining out, concluded that most of us will pay more if we know more. No surprise for cattlemen’s as age- and source- verification has consistently meant higher returns for market cattle but interesting that there is also a trickle down effect to consumers . Kansas State University wrapped up a study they started back in 2005 that tracked genetic, management and marketing characteristics of calves sold via video markets and found that a conscientious detailed focused rancher reaps better returns. Couple that with the University of Nebraska findings both from on-line surveys and in-restaurant taste tests in Connecticut and Arizona (two very different demographics I might add from having lived in both states) and reported that two- thirds of the consumers elected to order steaks when the location of the ranch or the state was printed. The most surprising aspect is that they were more than willing to pay $4.74 more if they knew which state the beef came from and $8.75 more if the ranch’s name was listed. And when faced with a generic steak priced at $20.95 65 % of participants said they would be willing to pay even more for the cut of meat if the source was verified.Isn't that interesting!