Consumer preferences for beer attributes in Germany: A conjoint and latent class approach

Abstract

Despite high marketing expenses by large breweries, the traditional German beer market has been declining for many years. The development may be related to reasons such as demographic change or increased health awareness. In a changing market, it is especially important to gain a precise knowledge of these variables. The aim of this study is to identify the attributes of beer that are crucial to the purchasing process and to segment the German market for beer. For this purpose, a conjoint analysis was carried out with a subsequent latent class analysis. As a result of the latent class analysis, three consumer segments were identified. In addition to achieving results from the conjoint analysis, the segments were characterized by sociodemographic status, beer-related questions, and results from a food-related lifestyle approach.The study sample was representative in terms of gender and age for the market of German beer drinkers (N = 484). The attributes of beer type, price, and origin were of importance for the selection of beer across all segments. Differences between the segments represented, in particular, the preferred type of beer as well as preferences for organic, calorie-reduced, and imported beer. The latter three characteristic specifications were relevant in only one of the three segments. This study provides evidence for a slowly changing German beer market.