As part of Darden's Consumer Psychology class my team investigated the effects of conspicuous consumption on craft beer selection.

1. Conspicuous Consumption’s Influence on
Beer Purchasing Behaviors

2. Craft Beer is changing the Beer Market
• +20% sales growth in 2012
• Accounts for 7.8% of the beer sold in 2013
• The number of craft beer brands sold in
restaurants/bars grew 22% during Q1 2013
Craft beer
brewer:
Small
<6 million barrels of
beer/year
Independent
<25% controlled by
major player
Traditional
majority of total
alcohol volume
produced in beer
• Over 8.400 SKUs sold at retail outlets across the
country
• Today over 2.500 breweries selling over 200
million barrels per year
Expansion of Craft Beer
Proliferation of Choice for Consumer
*U.S. numbers

3. Factors in Beer Choice
“The brand and style of beer
you drink says a lot about
you…consider them an
extension of [yourself]”
Price &
Happy
Hours
Beer
Style
Seasonal &
Limited
Editions
New
Flavors &
Beer Types
Family &
Bartender
Influence
60% of respondents who drink
beer say they like to drink
different types of alcohol on
different occasions
OccasionsSignaling

4. Psychological Factors Complicate the
Selection Process
Low
Involvement
High
Involvement
Conspicuous consumption is the spending
of money on and the acquiring of luxury goods
and services to publicly display economic
power or status
Countless Choices
-> Stacking Trade-Offs
-> Anxiety
Individualism v. Conformity
Signaling

5. Social contexts with strong status
signaling opportunities motivate
consumers to choose craft beer.
Hypothesis:

6. 1
2
3
4
Scenarios Presented to Respondents
You've joined your new boss for a happy hour beer in the restaurant next to your
office. You're seated next to each other at the bar, and the bartender hands you
the beer menu.
You're at the grocery store alone. You'd like to buy a beer to enjoy at home while
you watch TV with your long time significant other.
You are attending a housewarming party for an acquaintance. You'd like to bring
a six-pack of beer as a gift.
It has been a really long day, and you want to stop by the store to pick up a six-
pack of beer for you to enjoy at home by yourself.

7. Total Respondents 92
Male 65%
Female 35%
Brand Location Style Price Alcohol Content
Craft Beer Portland, OR IPA $3.00 3.5%
Chico, CA Wheat $4.00 4.5%
Brooklyn, NY Stout $5.00 6.0%
Mainstream Milwaukee, WI Lager $6.00 7.0%
St. Louis, MO Pilsner $7.00 10.0%
Top 5 States Represented
California 12.2%
Florida 14.4%
Texas 11.1%
New York 7.8%
Virginia 6.7%
Survey Logistics
RespondentsConjointOptions

8. 0
0.5
1
1.5
2
2.5
3
3.5
Brand
Price
StyleBrewery Location
Alcohol Content Boss
Party Gift
Sig. Other
Home Alone
Attribute Coefficients by Scenario

9. Boss Gift for party With significant other Home alone
Attribute Mean Attribute Mean Attribute Mean Attribute Mean
Brand:
Craft Beer
2.42 Brand:
Craft Beer
3.32 Brand:
Craft Beer
2.81 Price: $3.00 2.2
Price: $4.00 1.58 Style:
Stout/Lager
1.53 Price: $3.00 1.62 Brand:
Craft Beer
1.92
Style: Stout 1.38 Price: $3.00 1.42 Style: Lager 1.45 Style: Lager 1.39
Alcohol Content:
6.0%
1.22 Alcohol
Content: 7.0%
0.95 Alcohol Content:
7.0%
1.12 Alcohol Content:
4.5%
0.69
Loc: Portland,
Oregon
0.81 Loc: Portland,
Oregon
0.71 Loc: Portland,
Oregon
0.75 Loc: Portland,
Oregon
0.54
Conspicuous ConsumptionHigh Low
Results: Scenario Did Effect Attribute
Salience

10. Rec: Learn More and Launch Beer
Before launching a new beer, we recommend a Craft Beer Learning Plan:
 Does style drive craft beer purchases?
 Does location, particularly Portland, drive craft beer purchases?
 Gain deeper understanding of Craft beer consumer usage (Frequency and Loyalty
 How to best communicate functional and psychological benefits of craft beer?
 Consumer confidence/knowledge of craft beer
 Does craft beer meet a need across other price segments?
 If external motivation is driven by the need to exert status, how can craft beer influence internal
motivation for a deeper connection?
 To maximize hedonic experience and consumer well-being, how can craft beer become a driver of
happiness?

11. Questions?