A non-compensatory choice modeling analysis of Japanese consumers’ preferences for beef: A choice experiment approach

Abstract

The purpose of this paper is to examine, using choice experiments, the Japanese consumers’ valuation of domestic Wagyu beef, domestic dairy beef, Australian beef, and US beef when considering their bovine spongiform encephalopathy (BSE) test status. Some Japanese consumers give high priority to food safety while purchasing beef; this is expected to cause a non-compensatory valuation of food safety. As compared to the results derived from a compensatory utility model, a random parameters logit (RPL) with a non-compensatory utility model provides estimation results that are fitter for the respondents’ decision-making rules and also provides more valid willingness to pay (WTP) for each type of beef. The results suggest that the RPL with the non-compensatory utility model is more suitable for measuring the valuation of food safety with regard to beef by the food safety conscious Japanese consumers. Moreover, the WTP for each BSE-tested type of beef reveals that the Japanese consumers seem to regard the BSE test to be very important for ensuring the food safety of beef.