What's in a drink you call a Chai? quality attributes and hedonic price analysis of Tea

Abstract

Although India is a leading producer of tea, her export share is declining and her per capita consumption is extremely low. As a buffer against sluggish exports, managers of tea industry may want to expand domestic market. They may want to understand valuation consumers place on quality attributes of tea. Using exponential form of BoxCox transformation, we applied hedonic price analysis to price and quality attributes of 43 Indian tea brands. Consumers attached importance to aroma and colour. Attribute magnitudes may be enhanced through selective plantation, processing, and blending of teas before marketing it through generic promotions or brand advertisements