Consumer preferences for craft beer: The interplay of localness and advertising language

Abstract

This study explores the influence of the language of the label, origin of production, and origin of brewing ingredients on Croatian consumers' preferences and willingness to pay for organic craft beer. Employing an online survey and a choice experiment among 223 Croatian alcohol consumers, we find that while there’s a willingness to pay a premium for locally brewed beer with local ingredients, the use of English on labels negatively impacts consumers' willingness to pay. This suggests a preference for local narrative over foreign language labels, indicating that craft beer producers in tourist destinations like Croatia should prioritize local storytelling in their marketing strategies to better connect with domestic consumers.

Publication
Agribusiness: An International Journal
Andreas C. Drichoutis
Andreas C. Drichoutis
Professor of Consumer Behavior

His research interests are focused on decision making across a broad spectrum of topics pertinent to agricultural/food economics. His contributions are notably diversified spanning the area of contingent valuation and experimental auctions methods, choice under risk, inter-temporal decision making and applied demand analysis. Most of his research applies experimental economics methods to answer questions relevant to agricultural economists and decision scientists.