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Willingness to Pay for Sensory Attributes in Beer

Author

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  • Gabrielyan, Gnel
  • McCluskey, Jill J.
  • Marsh, Thomas L.
  • Ross, Carolyn F.

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 sociodemographic characteristics of consumers. We find that overall taste and hoppiness of a beer have a significant and positive impact on willingness to pay.

Suggested Citation

  • Gabrielyan, Gnel & McCluskey, Jill J. & Marsh, Thomas L. & Ross, Carolyn F., 2014. "Willingness to Pay for Sensory Attributes in Beer," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), pages 1-15, April.
    • Handle: RePEc:ags:arerjl:165908
    DOI: 10.22004/ag.econ.165908
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    References listed on IDEAS

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    1. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
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    3. Yang, Nan & McCluskey, Jill J. & Ross, Carolyn, 2009. "Willingness to Pay for Sensory Properties in Washington State Red Wines," Journal of Wine Economics, Cambridge University Press, vol. 4(1), pages 81-93, April.
    4. Jean-Marie Cardebat & Jean-Marc Figuet, 2004. "What explains Bordeaux wine prices?," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 293-296.
    5. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    6. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
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    Cited by:

    1. Baba, Yasmina & Kallas, Zein & Gil, Jose M. & Realini, Carolina, 2015. "Impact of hedonic evaluation on consumers’ preferences for beef enriched with Omega 3: A Generalized Multinomial Logit Model approach," 2015 Conference, August 9-14, 2015, Milan, Italy 211191, International Association of Agricultural Economists.
    2. Trey Malone & Jayson L. Lusk, 2016. "Brewing up entrepreneurship: government intervention in beer," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(3), pages 325-342, November.
    3. Chenyi He & Ruifeng Liu & Zhifeng Gao & Xin Zhao & Charles A. Sims & Rodolfo M. Nayga, 2021. "Does local label bias consumer taste buds and preference? Evidence of a strawberry sensory experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 550-568, July.
    4. Belmartino, Andrea & Liseras, Natacha, 2020. "The craft beer market in Argentina: An exploratory study of local brewers' and consumers' perceptions in Mar del Plata," Nülan. Deposited Documents 3919, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. Rossi, Jairus & Vassalos, Michael & Schmidt, Claudia & Lamie, R. David & Wade, Anne, 2023. "Consumer Perceptions of Craft Breweries in the American South," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(3), November.
    6. Biancamaria Torquati & Tiziano Tempesta & Daniel Vecchiato & Sonia Venanzi, 2018. "Tasty or Sustainable? The Effect of Product Sensory Experience on a Sustainable New Food Product: An Application of Discrete Choice Experiments on Chianina Tinned Beef," Sustainability, MDPI, vol. 10(8), pages 1-24, August.

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