Growing interest in health-conscious, sustainable, and ethically sourced foods has contributed torising demand for premium products such as grass-fed dairy. However, consumer adoption and pricing perceptions remain inconsistent, particularly across different retail settings. This thesis examines US consumers’ willingness to pay (WTP) for grass-fed milk, yogurt, and butter, with a focus on comparing preferences between online and in-store shopping channels. Using the contingent valuation method, survey data from 300 respondents were analyzed through a log-linear OLS model with random effects to estimate WTP and assess the influence of demographic and behavioral factors on purchasing decisions. The findings indicate a consistent premium for grass-fed dairy across all product categories,suggesting that both production-related attributes and personal values contribute to perceived value. While online purchases were associated with slightly higher median WTP and more high-end valuations, in-store shopping remained the preferred format, largely due to perceived advantages in freshness, product assurance, and immediacy. Milk and yogurt, particularly in their grass-fed and online formats, elicited the highest valuations,while butter consistently showed the lowest WTP across settings. Regression results confirmed that the grass-fed label significantly increased WTP, with a smaller but positive effect observed for online channels. Younger consumers and those with higher levels of education reported greater WTP, while gender and number of children were not significant predictors. Behavioral factors played a more prominent role: frequent grass-fed dairy buyers reported lower WTP, possibly due to cost sensitivity or price fatigue, whereas frequent general dairy shoppers expressed higher WTP. These insights offer practical implications for retailers and producers aiming to position premiumdairy products more effectively across both online and brick-and-mortar retail environments. By identifying key consumer segments and channel preferences, this research contributes to a deeper understanding of how grass-fed dairy products are valued in today’s evolving grocery landscape.