The Evaluation of the Local Beer Industry during the COVID-19 Pandemic and Its Relationship with Open Innovation

Abstract

The beer industry is one of the businesses affected during the COVID-19 pandemic. Despite the exponential growth of the beer industry throughout the years, this aspect of the beverage industry has gained limited attention and has been underexplored. This study aimed to provide a better and up-to-date understanding of Philippine-beer consumers to speed up its recovery. An online survey with 853 volunteer respondents was conducted to investigate Filipinos’ local beer consumption considering frequency, intake, expenses, and preference. A descriptive analysis of the consumers’ self-perceived evaluation of the changes in drinking showed a slight decrease in frequency, intake, and expenses and a minor change in preference. Somers’ d and the chi-squared test results indicated significant relationships between each demographic information (age, sex, and income) and frequency, intake, and expenses. In addition, a conjoint analysis with an orthogonal design indicated that price was the most important attribute (58.025%), followed by primary taste (12.452%), alcohol content (9.706%), mouthfeel (6.445%), aftertaste (6.355%), aroma (5.189%), and, lastly, color (1.827%). The findings of this study could be used as a baseline for improved product offerings, customized advertisements, and market segmentation. Moreover, the results of this study could be applied and extended by breweries to promote and create strategies. Lastly, this study could be extended and utilized by other beverage industries worldwide.

Application of Conjoint Analysis and 5Ps Marketing Mix in Identifying Customer Preference of Alcohol Consumption among Youths in the Philippines

“…Due to budget constraints, these three attributes are the most common taste attributes that people in the Philippines would consider, especially for younger generations. As indicated in the study by Ong et al [ 15 ], younger generations would consider alcoholic beverages for social gatherings and celebrations and mainly prefer the alcoholic content and price. Consumers are less likely to be appealed by the flavor [ 12 , 16 ].…”

“…On the other hand, people refers to the company’s target customers, whereas promotion refers to the various tactics used to attract or present a product to a client. Finally, the place identifies the target market for which the corporation prefers to sell the goods [ 15 ]. All information included in the tool was based on the data gathered and conjoint analysis results.…”

“…Focusing on the Philippines, a limited number of studies focusing on alcoholic beverage and their consumption is seen. Relevant and significant literature includes the study by Ong et al [ 15 ], which used conjoint analysis to consider beer consumption in the Philippines. Their study showed that most people consuming alcoholic beverages are young respondents.…”

Analysis of Investment Business Risks in the Beer Industry

“…The conclusion drawn from this was that although the intake of beer has decreased because of the epidemic. But from this, it was also discovered that consumer preferences impacted to the growth prospects of the beer sector in the future [2]. Plata et al study the impact of COVID on the exact consumers.…”