Do local craft beverages taste better? An investigation into the halo effect

Abstract

ABSTRACT In the United States, many consumers seek out local consumables, a phenomenon known as neolocalism. This behavior is exemplified by interest in local craft beer, which often uses differentiated local ingredients. Although popular, it is not clear if they taste better, compared to mass-produced craft beers or if a halo effect exists. Thus, this study measures customers’ expectations, perceptions, and satisfaction with the taste of a local craft beer, compared to a mass-produced craft beer using an experimental within-subject comparison. Results indicate that expectations were higher for the local craft beer, but satisfaction levels were higher for the non-local craft beer. Overall, for researchers, this study demonstrates the presence of a halo effect in some local craft beer contexts. For practitioners, findings allow them to gain greater understanding of customers’ expectations, perceptions, and satisfaction levels with relation to the taste of local craft and craft beer.