Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-13T00:45:27.535Z Has data issue: false hasContentIssue false

Willingness to Pay for Sensory Attributes in Beer

Published online by Cambridge University Press:  15 September 2016

Gnel Gabrielyan
Affiliation:
School of Economic Sciences at Washington State University
Jill J. McCluskey*
Affiliation:
School of Economic Sciences at Washington State University
Thomas L. Marsh
Affiliation:
School of Economic Sciences at Washington State University
Carolyn F. Ross
Affiliation:
School of Food Science at Washington State University
*
Correspondence: Jill McCluskeySchool of Economic SciencesHulbert Hall 101Washington State UniversityPullman WA 99164-6210Phone 509.335.2835 ▪ Email [email protected].
Get access

Abstract

As microbrew beers have become more popular, the intrinsic characteristics of beer have become more important in consumer purchasing decisions. We identify sensory properties that influence consumers' willingness to pay for beer using a contingent valuation model that includes subjective sensory evaluations and socio-demographic characteristics of consumers. We find that overall taste and hoppiness of a beer have a significant and positive impact on willingness to pay.

Type
Selected Papers
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Beer Institute. 2013. “Shipments of Malt Beverages and Per Capita Consumption by State 2012.” Available at www.beerinstitute.org/assets/uploads/2012_Beer_Consumption_By_State.pdf (accessed September 25, 2013).Google Scholar
Brewers Association. 2013. “Market Segments” web page. www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/market-segments (accessed September 25, 2013).Google Scholar
Cardebat, J-M., and Figuet, J-M. 2004. “What Explains Bordeaux Wine Prices?Applied Economics Letters 11(5): 293296.Google Scholar
Cohen, J. 1992. “A Power Primer.” Psychological Bulletin 112(1): 155.Google Scholar
Cohen, J. 1988. Statistical Power Analysis for the Behavioral Sciences. Mahwah, NJ: Lawrence Erlbaum Associates.Google Scholar
Combris, P., Lecocq, S., and Visser, M. 1997. “Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?The Economic Journal 107(441): 390402.Google Scholar
Grunert, K.G. 2002. “Current Issues in the Understanding of Consumer Food Choice.” Trends in Food Science and Technology 13(8): 275285.CrossRefGoogle Scholar
Hanemann, W.M. 1984. “Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses.” American Journal of Agricultural Economics 66(3): 332341.Google Scholar
Hanemann, M.W., Loomis, J., and Kanninen, B.J. 1991. “Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation.” American Journal of Agricultural Economics 73(4): 12551263.Google Scholar
Hayakawa, H., and Vinieris, Y.P. 1997. “Consumer Interdependence via Reference Groups.” Journal of Political Economy 85(3): 599615.Google Scholar
Holmquist, C., McCluskey, J.J., and Ross, C.F. 2012. “Consumer Preferences and Willingness to Pay for Oak Attributes in Washington Chardonnays.” American Journal of Agricultural Economics 94(2): 556561.Google Scholar
Lecocq, S., and Visser, M. 2006. “What Determines Wine Prices: Objective vs. Sensory Characteristics.” Journal of Wine Economics 1(1): 4256.CrossRefGoogle Scholar
McCluskey, J.J., and Shreay, S. 2011. “Culture and Beer Preferences.” In Swinnen, J.F.M., ed., The Economics of Beer. Cambridge, UK: Oxford University Press.Google Scholar
Ranyard, R., Charlton, J.P., and Williamson, J. 2001. “The Role of Internal Reference Prices in Consumers' Willingness to Pay Judgments: Thaler's Beer Pricing Task Revisited.” Acta Psychologica 106(3): 265283.Google Scholar
Thaler, R. 1985. “Mental Accounting and Consumer Choice.” Marketing Science 4(3): 199214.Google Scholar
Tremblay, C.H., and Tremblay, V.J. 2011. “Recent Economic Developments in the Import and Craft Segments of the U.S. Brewing Industry.” In Swinnen, J.F.M., ed., The Economics of Beer. Cambridge, UK: Oxford University Press.Google Scholar
Yang, N., McCluskey, J.J., and Ross, C.F. 2009. “Willingness to Pay for Sensory Properties in Washington State Red Wines.” Journal of Wine Economics 4(1): 8193.Google Scholar
Zajonc, R.B. 1968. “The Attitudinal Effects of Mere Exposure.” Journal of Personality and Social Psychology 9(2): 127.Google Scholar