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Permalink Research Tests Willingness to Pay for Beef Labels

Arizona State University conducted an online experiment with beef customers that tested their willingness to pay for steak labeled with different attributes. Researchers found consumers willing to pay more for a stand-alone "natural" label when they weren't aware of the USDA definition for "natural." Consumers who were informed of the definition for natural would pay more for that label when it occurred in conjunction with other desirable labels, such as "no growth hormones." The informed consumers indicated willingness to pay $3.80 more per pound for beef labeled "natural and grass-fed."

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