College Students’ Preferences for Milk Tea: Results from a Choice Experiment

Abstract

(1) Background: Although China is one of the largest tea-producing countries in the world, the Chinese tea industry is facing a decline in profits. However, an explosive market, namely milk tea, has garnered the attention of certain famous tea companies, several of which have launched milk tea products through sub-branding or co-branding. However, there is a scarce amount of literature on consumers’ attitudes toward these marketing strategies of the milk tea market. (2) Methods: Utilizing the choice experiment (CE) approach, the aim of this study was to explore consumer preferences for milk tea and investigate consumers’ socio-demographic characteristics regarding the preference for milk tea. (3) Results: Firstly, although consumers show positive attitudes toward tea bases that come from famous tea companies, they barely pay attention to the types of tea bases of milk tea products. As for ingredients, consumers show significantly negative attitudes toward non-dairy creamers when compared with fruit bases. Moreover, new brands could undermine consumers’ evaluations of milk tea. Secondly, education, the weekly frequency of drinking milk tea, and monthly allowance have a significant influence on consumer preferences. (4) Conclusions: Tea bases from famous tea companies can enhance consumer utility and promote consumer preference for milk tea. Thus, famous tea companies could seek cooperation with milk tea manufacturers, which would be a win–win strategy for both sides. On the other hand, tea companies should make use of their established reputations to gain consumers in the milk tea market, and co-branding or sub-branding strategies could be cost-effective methods to achieve this goal in the highly competitive milk tea market.