Consumer Tastes and Preferences Regarding Mississippi Agricultural Products

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
607	5010	3010	50%
607	6299	3010	50%

Progress 07/01/00 to 06/30/05

Outputs
Studies investigating marketing of Mississippi farm-grown freshwater prawns focused on new product placement in grocery outlets and consumer knowledge of the product. In-store pricing experiments and mail surveys to residents within the grocery store's zip code area were conducted in a rural and urban area. Each method provided estimates of what consumers would pay for prawn products. Prawn price estimates were significantly different between in-store and survey methods, but statistically similar for established shellfish products. Results were published in a Mississippi Agriculture and Forestry Experiment Station bulletin and distributed at the 2005 U.S. prawn grower association meeting.

Impacts
Prawn marketing results indicated that the new freshwater prawn product had a high level of potential consumer acceptance. Willing-to-pay amounts by respondents were similar to prices they would pay for marine shrimp. Respondents indicated they would purchase prawns and shrimp at restaurants and grocery outlets. Differentiating prawns from marine shrimp could lead to higher prices for prawns. Such valued added prawn products would require educating the consumer about the nutritional, flavorful and textural differences between the prawn and shrimp products. Increased consumption of prawns was hindered by price, lack of available product and lack of preparation knowledge, areas needing additional investigation. Research results obtained in 2005 will be helpful to the fledgling U.S. freshwater prawn industry.

Publications

Hudson, Darren, Tian Xia, and Osei Yeboah. "FDI and Domestic Industries: Outsourcing or Market Expansion?" Review of Agricultural Economics, 27(2005):387-393.
Nalley, Lanier, Darren Hudson, and Gregory Parkhurst. "The Initial Endowment Effect in Experimental Auctions Revisited: Further Evidence." Applied Economics Letters, 12(2005): 59-63.
Watson, Susan, Erin Tucker, and Darren Hudson. "Consumer Willingness to Pay for Attributes of Flat Iron Steak." Southwestern Economic Review, 32(2005): 93-100.
Hanson, T.R., D. Hudson, K. Gallardo and S. Sempier. Accepted in 2005. "Opinions of U.S. Consumers Toward Marine Shrimp." Mississippi State University, Mississippi Agricultural and Forestry Experiment Station, Bulletin 1149.
Hanson, T.R., D. Hudson, K. Gallardo and S. Sempier. 2005. "Opinions of Rural and Urban Consumers Toward Freshwater Prawns: Results from 2003 and 2004 Surveys." Mississippi State University, Mississippi Agricultural and Forestry Experiment Station, Bulletin 1152, November.
Hudson, Darren. "Preference (In)Stability." Organized Symposium presentation to the 2005 American Agricultural Economics Association Annual Meetings, Providence, RI, July 2005.
Gallardo, R.K., T.R. Hanson and D. Hudson. 2005. "Comparison of Stated Choice and In-Store Experimental Methods in Predicting Actual Market Behavior for Freshwater Prawns (Macrobrachium rosenbergii) Consumers." Presented at the Southern Agricultural Economics Association 2005 Annual Meetings, February 5-9, Little Rock, Arkansas.
Hanson, T.R., M.D. Hudson and R.K. Gallardo. 2005. "Consumers Attitudes and Opinions toward Freshwater Prawns Macrobrachium rosenbergii." Presented at Aquaculture America 2005 - Image, Sustainability and All that Jazz, January 17-20, New Orleans, Louisiana.
Hudson, Darren, Karina Gallardo, and Terry Hanson. "Ability of Choice Experiments to Predict Actual Market Outcomes: Evidence from Freshwater Prawns." Mississippi State University Economic Sciences Symposium, February 2005.
Nalley, Lanier, Darren Hudson, and Greg Parkhurst. "The Impacts of Taste, Location of Origin, and Health Effects on the Market Demand for Sweet Potatoes." Mississippi Agricultural and Forestry Experiment Station Bulletin 1142, 2005.
Hanson, T. R. 2005. "U.S. Study Examines Market for Freshwater Prawns." Global Aquaculture Advocate. June, vol. 8, no. 3: 26-28.

Progress 01/01/04 to 12/30/04

Outputs
Two studies looking at freshwater prawn focused on new product placement in grocery outlets and consumer knowledge of the product. In-store pricing experiments and mail surveys to residents within the grocery store's zip code area was conducted in a rural and urban area. Each method provided estimates of what consumers would pay for prawn products. Prawn price estimates were significantly different between in-store and survey methods, but statistically similar for established shellfish products. Results were presented at a U.S. prawn grower association meeting.

Impacts
The freshwater prawn mail survey and in-store pricing experiments represent a major innovation in data collection and allowed for direct hypothesis testing between 'revealed' choice grocery store pricing experiments and 'stated' preference mail surveys. The resulting analyses indicated stated preference instruments work well for established products as they predicted willingness to pay results that were statistically similar those estimated from mail survey methods, indicating substitutability between methods. However, for new products, such as the freshwater prawn, there were significant differences between the two estimation methods indicating unreliability in the mail survey compared to in-store consumer behavior. Results from mail surveys to a large urban (Germantown, TN) and rural (Starkville, MS) area revealed a high potential for consumers' acceptance of freshwater prawns, a new shellfish product. Willing-to-pay amounts by respondents were similar to prices they would pay for marine shrimp. Respondents indicated they would purchase prawns and shrimp at restaurants and grocery outlets. Differentiating prawns from marine shrimp could lead to higher prices for prawns. Such valued added prawn products would require educating the consumer about the nutritional, flavorful and textural differences between the prawn and shrimp products. Because consumer's had a positive attitude toward farm-raised prawn products this aspect of freshwater prawn could also be a focus area for the product. Research results obtained in 2004 will be helpful to the fledgling U.S. prawn industry.

Publications

Lusk, Jayson and Darren Hudson. Willingness to Pay Estimates and their Relevance to Agribusiness Decision Making. Review of Agricultural Economics, 26(2004): 152-169.
Hudson, Darren, Lee Seah, Diane Hite, and Tim Haab. Telephone Presurveys, Self-Selection, and Non-Response Bias to Mail and Internet Surveys in Economic Research. Applied Economics Letters, 11/4(2004): 273-240.
Nalley, Lanier, Darren Hudson, Robert Rogers, James Martin, and Joshua Herring. In-Store Evaluation of Consumer Willingness to Pay for 'Farm Raised' Pre-Cooked Roast Beef. Journal of Agribusiness, 22(2004): 163-173.
Hudson, Darren and Emily Griffin. Market Potential for Mississippi Grown Cut Flowers. Mississippi Agricultural and Forestry Experiment Station Bulletin 1140, July 2004.
Parkhurst, Greg, Darren Hudson, and Jason Shogren. Experimental Investigation of WTP/WTA Divergence. Paper presented at the 2004 Southern Economics Association Annual Meetings, New Orleans, LA, November 2004.
Hudson, D. Mandatory Country-of-Origin Labeling: Implications for Applied Research and Extension: A Discussion. Organized Symposium Presentation, 2004 Southern Agricultural Economics Association Annual Meetings, Tulsa, OK, February 2004.
Hanson, T., D. Hudson and K. Gallardo. 2004. Consumer Willingness to Pay and Attitudes Toward Freshwater Prawns - Results of a Marketing Study. Presented at the 2005 Annual Meeting of the U.S. Freshwater Prawn & Shrimp Growers Association, Inc. Convention Center Grand Casino's Veranda Hotel, Tunica, MS, December 10-11.
Gallardo, K., T.R. Hanson and D. Hudson. 2004. Price Demand Analysis of Freshwater Prawns: Grocery Store Experiment and Area Mail Survey. Presented at the U.S. Freshwater Prawn and Shrimp Growers Association meeting, Tunica, MS, January 15-16, 2004.

Progress 01/01/03 to 12/31/03

Outputs
One study has been completed concerning consumer attitudes and preferences toward catfish, oysters, shrimp and tuna. A number of studies are underway examining consumer tastes and preferences for agricultural products in both Mississippi and the United States. The freshwater prawn study focuses on new product placement in grocery outlets, knowledge of product, and conjoint pricing simulations. Data is being collected in a rural setting and in a metropolitan suburb area using an in-store pricing experiment as well as a mail survey to the same area. Comparisons will be made between the estimates derived from the two study areas and two experimental methods. One presentation of preliminary data has been presented to a prawn grower association

Impacts
Consumer's reasons for eating catfish include enjoyment of flavor, health/nutrition, and addition of variety to their diet. Catfish consumers identified the main reasons for not consuming catfish more often as price, lack of fresh product, lack of preparation knowledge, and too time consuming to prepare. Respondents located in 'non-traditional' catfish consumption regions of the U.S. would eat more catfish if a good product was continuously available and secondly, if a variety of ready-to-eat products were widely available. Thirty percent of non-catfish consumers said they would try farm-raised catfish. Oyster survey results indicated consumer's enjoyment of flavor and addition of variety to their diet as the main reasons for consumption. Main reasons for not consuming oysters more often were price, product safety, and lack of availability of fresh product. The main reasons for not consuming oysters were taste, texture, smell, and product safety concerns. Results from the oyster portion of the study are being used by marketers to target consumers who are most likely to increase their oyster consumption. Additionally these results are being used by processors considering oyster purification methods by comparing our estimated consumer willingness to pay for purified, safe oysters to the purification cost. Freshwater prawn research addresses an expressed need for new product pricing information. Ten years ago there was limited available stock to producers. Presently, the production system is well known, but finding marketing outlets is difficult and time consuming.

Publications

House, L., T. Hanson, and S. Sureshwaran. 2003. U.S. Consumers: Examining the Decision to Consume Oysters and the Decision of How Frequently to Consume Oysters. Journal of Shellfish Research. Vol. 22, No. 1, 51-19.
Hudson, D., D. Hite, A. Jaafar, and F. Kari. Environmental Regulation Through Trade: The Case of Shrimp. Journal of Environmental Management, 68/3 (2003): 231-238.
Buguk, C., D. Hudson, and T. Hanson. Price Volatility Spillover in Agricultural Markets: An Examination of U.S. Catfish Markets. Journal of Agricultural and Resource Economics, 28(2003): 86-99.
Isik, M., K. Coble, D. Hudson, and L. House. A Model of Entry-Exit Decisions and Capacity Choice Under Demand Uncertainty Agricultural Economics: The Journal of the International Agricultural Economics Association, 28(2003): 215-224.
House, L., T. Hanson, S. Sureshwaran, and H. Selassie. 2003. Opinions of U.S. Consumers About Farm-Raised Catfish: Results of a 2000-2001 Survey. Mississippi State University, Mississippi Agricultural and Forestry Experiment Station, Bulletin 1134, July.
Hanson, T., L. House, S. Sureshwaran, B. Posadas, and A. Liu. 2003. Opinions of U.S. Consumers Toward Oysters: Results of a 2000-2001 Survey. Mississippi State University, Mississippi Agricultural and Forestry Experiment Station, Bulletin 1133, July.
Hanson, T.R. 2003. Consumer Perceptions and Attitudes Toward Farm-raised Catfish. Agricultural Economic & Policy Perspectives published by the Department of Agricultural Economics, Mississippi State University, May 2003.
Hanson, T.R., L.O. House and B.C. Posadas. 2003. U.S. Consumer Perceptions and Attitudes Toward Catfish. Abstract printed in the Book of Abstracts of the Aquaculture America 2003 - New Frontiers in Aquaculture, Feb. 18-21, 2003, Louisville, KY: p. 111.
Hanson, T.R., L.O. House and B.C. Posadas. 2003. U.S. Consumer Perceptions and Attitudes Toward Catfish. Abstract printed in the Book of Abstracts of the Aquaculture America 2003 - New Frontiers in Aquaculture conference, Feb. 18-21, 2003, Louisville, KY.
Hanson, T.R. 2003. Consumer Attitudes toward U.S. Farm-Raised Catfish. Poster at the Catfish Processors Conference, Hosted by Mississippi State Extension Service, Mississippi State University, MS, Feb. 26.
Hanson, T.R., L.O. House and B.C. Posadas. 2003. Marketing Implications of Consumer Attitudes Toward Oysters. Presented at the 95th Annual Meeting of the National Shellfisheries Association, April 13-17, 2003, New Orleans, LA.
Hanson, T.R., L.O. House and B.C. Posadas. 2003. U.S. Consumer Perceptions and Attitudes Toward Catfish. Presented at Aquaculture America 2003 - New Frontiers in Aquaculture, Feb. 18-21, 2003, Louisville, KY.
Hanson, T.R., L.O. House and B.C. Posadas. 2003. U.S. Consumer Perceptions and Attitudes Toward Catfish. Presented at Aquaculture America 2003 - New Frontiers in Aquaculture, Feb. 18-21, 2003, Louisville, KY.
Hanson. 2003. Consumer Attitudes toward Catfish. Presented at the January 2003 Arkansas Fish Farmers Conference.
Hanson, T.R. 2003. U.S. Consumer Perceptions and Attitudes Toward Farm-raised Catfish. The Catfish Journal, February.
Hanson, T.R. 2003. Results of a Consumer Survey on the Opinions of U.S. Consumers Toward Farm-raised Catfish. Aired Jan. 28 on the Better Farming radio program, hosted by Tyson Gair, Mississippi State University Office of Agricultural Communications.

Progress 01/01/02 to 12/31/02

Outputs
A number of studies are underway examining consumer tastes and preferences for agricultural products in both Mississippi and the United States. Three surveys have been administered examining Mississippian's attitudes toward genetically modified foods. The surveys have focused on the relative importance of genetic engineering versus brand equity in the purchasing decision, the ability of enhanced end-use characteristics to increase consumer demand for genetically engineered foods, and identifying the determinants of consumer acceptance of genetically modified foods. Data from these surveys has been compiled and preliminary results have been presented at a number of professional meetings. Several papers have been accepted for publication in peer-reviewed journals. Another ongoing project focuses on consumer perceptions of and demand for various beef quality attributes. A number of studies have been conducted in this regard. A couple of papers have been published and several have been accepted and will be forthcoming in peer-reviewed journals.

Impacts
The beef quality research has been well accepted and widely cited in the beef industry. The research findings have sparked interest among beef marketers, who are attempting to increase beef demand. Results have been discussed on farm radio shows and have been cited in the trade magazines such as: Successful Farming, Progressive Farmer, Beef, Agriculture Research Magazine, and Science News. In addition, the new methodology used to address many of the above issues, experimental auctions, has also had an impact on agricultural economists. Because of this work, many researchers are beginning to consider and examine alternative auction mechanisms and elicitation environments to value non-market goods. The literature in this field will likely be heavily influenced by our past and ongoing findings. Lastly, the research examining consumer perceptions of genetically modified foods has had a significant impact in a number of arenas. The public has a growing interest in this area, as evidenced by numerous requests by reporters for information about public acceptance of genetically modified foods. In addition, consumer perceptions of varying types of genetically modified foods have important implications for public policy and marketing of agricultural commodities. Our research is beginning to address some of the important questions posed by policy makers and the biotechnology industry, potentially making future policy and marketing campaigns more effective.

Publications

Lusk, J.L. "A Comparison of Conjoint Analysis Response Formats: Comment." American Journal of Agricultural Economics. 84(November 2002):1165-71.
Lusk, J.L. and P. Sullivan. "Consumer Acceptance of Genetically Modified Foods." Food Technology. 56(October 2002):32-37.
Lusk, J.L. and T.C. Schroeder. "Effects of Meat Recalls on Futures Market Prices." Agricultural and Resource Economics Review. 31(April 2002):47-58.
Lusk, J.L., A.M. Featherstone, T.L. Marsh, and A.O. Abdulkadri. "Empirical Properties of Duality Theory." Australian Journal of Agricultural and Resource Economics. 46(March 2002):45-68.

Progress 01/01/01 to 12/31/01

Outputs
A number of studies are underway examining consumer tastes and preferences for agricultural products in both Mississippi and the United States. Three surveys have been administered examining Mississippian's attitudes toward genetically modified foods. The surveys have focused on the relative importance of genetic engineering versus brand equity in the purchasing decision, the ability of enhanced end-use characteristics to increase consumer demand for genetically engineered foods, and identifying the determinants of consumer acceptance of genetically modified foods. Data from these surveys is currently being compiled and preliminary results have been presented at a number of professional meetings. Several papers have been accepted for publication in peer-reviewed journals. Another project is examining consumer perceptions of oysters and farm raised catfish. A nationwide survey of consumers was conducted in early 2001. Data is being complied and a paper is scheduled to be presented at an upcoming professional meeting. Lastly, another ongoing project focuses on consumer perceptions of and demand for various beef quality attributes. A number of studies have been conducted in this regard. A couple of papers have been published and several have been accepted and will be forthcoming in peer-reviewed journals.

Impacts
The beef quality research has been well accepted and widely cited in the beef industry. Some of my findings have sparked interest among beef marketers, who are attempting to increase beef demand. I have been asked to discuss consumer valuation of beef tenderness on farm radio shows and results from research that I have conducted have been cited in the following trade magazines: Successful Farming, Progressive Farmer, Beef, Agriculture Research Magazine, and Science News. In addition, the new methodology used to address many of the above issues, experimental auctions, has also had an impact on agricultural economists. Because of this work, many researchers are beginning to consider and examine alternative auction mechanisms and elicitation environments to value non-market goods. I anticipate that the literature in this field will be heavily influenced by our past and ongoing findings. Lastly, the research examining consumer perceptions of genetically modified foods has had a significant impact in a number of arenas. As evidenced by a request for an interview on Mississippi Public Radio and several newspaper articles, the public has a growing interest in this area. In addition, consumer perceptions of varying types of genetically modified foods have important implications for public policy and marketing of agricultural commodities. Our research is beginning to address some of the important questions posed by policy makers and the biotechnology industry, potentially making future policy and marketing campaigns more effective.

Publications

Lusk, J.L., J.A. Fox, T.C. Schroeder, J. Mintert, and M. Koohmaraie. In-Store Valuation of Steak Tenderness. American Journal of Agricultural Economics. 83(August 2001):539-550.
Lusk, J.L., M.S. Daniel, D.R. Mark, and C.L. Lusk. Alternative Calibration and Auction Institutions for Predicting Consumer Willingness-to-Pay for Non-Genetically Modified Corn Chips. Journal of Agriculture and Resource Economics. 26(July 2001):40-57.
Lusk, J.L., T.L. Marsh, T.C. Schroeder, and J.A. Fox. Wholesale Demand for USDA Quality Graded Boxed Beef and the Effects of Seasonality. Journal of Agriculture and Resource Economics. 26(July 2001):91-106.
Lusk, J.L. Branded Beef. Is It What's For Dinner? Choices. 2nd Quarter(2001):27-30.
Lusk, J.L. and J.A. Fox, Regional Differences in Consumer Demand for Beef Ribeye Steak Attributes. MAFES bulletin 1111. August, 2001.
Mintert, J. J.L. Lusk, T.C. Schroeder, J.A. Fox, M. Koohmaraie. Valuing Beef Tenderness. Department of Agricultural Economics, Kansas State University. Extension Publication. MF-2464, 2000.