TITLE:
What Is Craft?—An Empirical Analysis of Consumer Preferences for Craft Beer in Italy
AUTHORS:
Christian Garavaglia, Mauro Mussini
KEYWORDS:
Craft, Consumer Preferences, Conjoint Analysis, Beer
JOURNAL NAME:
Modern Economy,
Vol.11 No.6,
June
28,
2020
ABSTRACT: This paper discusses the
term “craft” and its meaning from the consumer’s perspective. Consumers assign
value to craft products for their uniqueness, customization, originality, and
personality. Craft products are usually sold at higher prices than non-craft products. Therefore, we need to understand what consumers expect in a craft product. We collect original data and present
an empirical investigation using conjoint analysis. We focus on the case of
craft beer in Italy. Based on our results, consumers believe that the
ownership, firm size, and production process are crucial attributes that define
craft beer. In particular, we show that consumers believe that craft beer is
produced by an independent (family-owned)
firm in a small-scale plant and is non-pasteurized.