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Factors Affecting Hanwoo Beef Consumption: Not Only What, But Also How Matters

Consumer demand for meat is constantly growing and changing in Korea, and a number of studies have examined the determinants of meat demand, especially hanwoo beef. In addition to domestic Korean beef, consumers encounter various alternatives such as the U.S. and Australian beef in the beef market, and purchase them in consideration of their preferences and economic conditions. The selection attributes among various beef types might be interdependent between alternatives. The issue at hand is how to incorporate consumers considering other alternatives in their purchasing decisions. This study implements the multivariate probit model of Hanwoo beef, U.S. beef, and Australian beef that assesses how consumers’ characteristics and perception of beef attributes influence consumer beef purchasing decisions. Results show that significant correlations exist between origins of beef in the purchase decision, suggesting underlying complementary preferences among various beef origins. Taste and nutrition are found as the key factors in the purchasing decision of hanwoo beef, whereas safety and price are not. Moreover, the results reveal that consumers who regularly consume imported beef frequently purchase Hanwoo beef, meaning that there is a possibility to consider either Hanwoo beef or imported beef depending on the purpose of a dish to be cooked at home. Socioeconomic factors like age, income, family size, marital status and residential region significantly determine consumers’ shopping frequency of Hanwoo beef.