Consumers' Characteristics and Preferences in the Australian Beef Market

Abstract

Beef consumers in Australia have shown differences in their preferences for products and sensitivity to price. This can be explained by the characteristics and influences of each consumer and the effect on expected quality of cues related to health, production process and eating experience. Eating experience is difficult to predict as consumers generally do not have enough information to form reliable expectations. In this context, branded beef can help to signal quality and reduce the degree of uncertainty that consumers experience when shopping. Research has detected premiums for branded beef cuts, where product attributes related to specific preferences had more influence than income and other consumer characteristics. Focus-group research, reported in this paper, has identified different segments, premiums for preferred products and the potential for large-scale differentiation and branding in the Australian market.