Quantifying the Effects of New Product Development: The Case of Low-Fat Ground Beef
oleh: Gary W. Brester, Pascale Lhermite, Barry K. Goodwin, Melvin C. Hunt
| Format: | Article |
|---|---|
| Diterbitkan: | Western Agricultural Economics Association 1993-12-01 |
Deskripsi
Low-fat ground beef (LFGB) is a new product designed to be as palatable as beef products that contain significantly higher levels of fat. A hedonic model shows that each unitary increase in the leanness of ground beef products carries a price premium of $.0206/lb. If LFGB garners a 10% share of the ground beef market, the retail price of all ground beef products will increase by $.01/lb. and consumption will increase by 39.75 million lbs. The price of commercial cows will increase by $.56/cwt. Price quantity, and welfare measures are magnified as the market share captured by LFGB increases.