This paper discusses the term “craft” and its meaning from the consumer’s perspective. Consumers assign value to craft products for their uniqueness, customization, originality, and personality. Craft products are usually sold at higher prices than non-craft products. Therefore, we need to understand what consumers expect in a craft product. We collect original data and present an empirical investigation using conjoint analysis. We focus on the case of craft beer in Italy. Based on our results, consumers believe that the ownership, firm size, and production process are crucial attributes that define craft beer. In particular, we show that consumers believe that craft beer is produced by an independent (family-owned) firm in a small-scale plant and is non-pasteurized.
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