Defining and Quantifying Certified Angus Beef® Brand Consumer Demand
Defining and Quantifying Certified Angus Beef® Brand Consumer Demand
Reflection by Ronuel Jess A. Micu
Starting with the mission statement of the Certified Angus Beef ® (CAB) brand, “Increase demand for registered Angus cattle through a specification-based, branded-beef program to identify consistent, high quality beef with superior taste” (CAB 2011 cited in Zimmerman and Schroeder 2011, p.1), it gives us a clear view of the objective of the company to let it flourish within the market due to increase consumption of this product with its increasing demand. In line with this, consumers are the most affected portion of the population because their preferences for health benefits and taste are certainly considered. Not just that, income and beef prices comes into the picture as well defined by economic constraints. As stated by Eales and Unnevehr (1988), “consumers make purchase decisions on a more detailed product level” which means quality of the good is a very important factor. Moreover, willingness to pay for a meat product is affected by its specific set of characteristics which was studied by Gao and Scroeder (2009) to prove that “brands and advertising effects cannot be ignored when considering beef demand.”
There were methods, namely: graphs and scatterplot, shown on the article that shows the annual sales and possible demand-related estimates for CAB as a product. However, results of the approaches “provides little information about demand change on an annual basis” (Zimmerman and Schroeder 2011, p.6). This in turn paved the way for the use of demand indexes wherein,
A demand index creates a standardized measurement tool for estimating demand over time. The index accounts for quantity, price, population and inflation. Index-based demand models also utilize own-price elasticity measurements. The elasticity is the percentage change in consumer purchases of a particular good in response to a one percent change in price. (Zimmerman and Schroeder
Reflection by Ronuel Jess A. Micu
Starting with the mission statement of the Certified Angus Beef ® (CAB) brand, “Increase demand for registered Angus cattle through a specification-based, branded-beef program to identify consistent, high quality beef with superior taste” (CAB 2011 cited in Zimmerman and Schroeder 2011, p.1), it gives us a clear view of the objective of the company to let it flourish within the market due to increase consumption of this product with its increasing demand. In line with this, consumers are the most affected portion of the population because their preferences for health benefits and taste are certainly considered. Not just that, income and beef prices comes into the picture as well defined by economic constraints. As stated by Eales and Unnevehr (1988), “consumers make purchase decisions on a more detailed product level” which means quality of the good is a very important factor. Moreover, willingness to pay for a meat product is affected by its specific set of characteristics which was studied by Gao and Scroeder (2009) to prove that “brands and advertising effects cannot be ignored when considering beef demand.”
There were methods, namely: graphs and scatterplot, shown on the article that shows the annual sales and possible demand-related estimates for CAB as a product. However, results of the approaches “provides little information about demand change on an annual basis” (Zimmerman and Schroeder 2011, p.6). This in turn paved the way for the use of demand indexes wherein,
A demand index creates a standardized measurement tool for estimating demand over time. The index accounts for quantity, price, population and inflation. Index-based demand models also utilize own-price elasticity measurements. The elasticity is the percentage change in consumer purchases of a particular good in response to a one percent change in price. (Zimmerman and Schroeder