Preferences of processing companies for attributes of Swiss milk: A conjoint analysis in a business-to-business market

This study aimed to determine key attributes of milk that drive a processor's supply decisions and possibilities for differentiation based on these product attributes. Feedback-driven exploration was applied to derive product attributes relevant to the buying decision. Conjoint analysis with hierarchical Bayes estimation methods was used to determine the relative importance of attributes. Results show that the technical aspects of milk, as well as the price and country of origin, dominate the buying decision. Potential for differentiation was found for environmental and societal attributes as well as freedom from genetically modified products. Product and supplier criteria also provide the potential to segment the market if the price premium is held within limits.