Using Choice-Based Conjoint Analysis in the China Market of Imported Beer

Abstract

Purpose -With the rapid economic development, great changes have happened in the Chinese beer market. The scale of imported beer is increasing. However, the sales of native Chinese beer decrease in recent years. It is because more Chinese customers prefer beer with unique attributes than those with lower prices. In order to take an advantage in this market, practitioners should develop new products to satisfy Chinese customers. Scholars have also focused on beer characteristics to estimate consumers' behavior for improving the development of beer industry. However, most studies are theoretically centered on marketing strategy management or general understanding of the market. It is not enough for us to explain customers' consumption patterns. Some empirical research did attempt to find out beer attributes that may influence their choice behavior. However, they failed to verify what can increase customers' utility through a new product. More importantly, few evidences can be found in the literature. Therefore this study explores the major characteristics of imported beer which may associate with customers' preferences. Research design, data, and methodology -With the results of literature review and focus group interview, we found out four main imported beer attributes and the levels of each factor. A pre-test is constructed to check the problems in the questionnaire protocol. With the results of pre-test, the revised questionnaire is processed among customers who have purchased and had imported beer in China regions such as Beijing, Shanghai, Jiangsu, Guangdong and so on. The choice-based conjoint analysis is applied to analyze the useful data of 205. Results -Results indicate that choice-based conjoint analysis is the effective method to estimate customers' choice behavior. Results also indicate that country of origin, price, taste, and package affect customers' preference and the importances of imported beer attributes are significantly different. Conclusions -Country of origin, price, taste, and package are important for customers to make an imported beer choice decision. Marketers should consider these determinants and their importance to develop new products. Moreover, choice-based conjoint analysis should be the useful method for practitioners to develop a new product of imported beer for sustainable business in the competitive industry.

Dynamic analysis of source-based preferences: the case of imported beer in China

“…Domestic beer is not included in the analysis. This should not be problematic because there is evidence to suggests that Chinese consumers differentiate between domestic and imported beer (Gao et al , 2018; Nogueira and Jazcii, 2018). This suggests that the marginal rate of substitution between domestic and imported beer could be invariant to country of origin (i.e.…”

“…Of the many sectors experiencing rapid growth, Chinese demand for imported beer, wine, and spirits stands out. While Chinese wine consumption and imports have been studied at length (Anderson and Wittwer, 2015; Camillo, 2012; Masset et al , 2016; Muhammad and Countryman, 2019; Muhammad et al , 2014; Thorpe, 2009), less attention has been given to the recent rise in beer imports (Gao et al , 2018; Wang et al , 2017). When considering the significant growth in Chinese beer imports, the following questions arise.…”

“…Only recently have beer demand studies considered preferences due to production source or country of origin (Calvo Porral and Levy-Mangin, 2015; Gao et al , 2018), though we know this to be a significant driving factor for other alcoholic beverages, particularly wine. Capitello et al (2015) specifically address how country of origin affects consumers demand for imported wine in China.…”