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Producers of specialty products that apply nonindustrial production techniques to deliver high quality and authenticity to niche markets define themselves in opposition to industrial production. This forces them to strike a delicate balance between, on the one hand, emphasizing the symbolic value related to quality, creativity and distance from traditional industrial production, and on the other hand, ensuring profitability through commercial orientation. This paper aims to explore how new and established firms benefit from a different balance between a strategic orientation toward creativity and the symbolic value of specialty products and commercialization.

Based on survey data from 99 specialty coffee roasters, this study uses statistical regression models to analyze how new versus established firms benefit from a strategic orientation toward creativity versus commercialization.

The authors find that firms benefit from shifting the balance from a strategic orientation on creativity in new firms to a strategic orientation on commercialization in more established firms. This shift increases the likelihood that firms’ passion and creativity lead to commercial success.

The findings demonstrate the importance of strategic orientation and emphasize that business owners need to revisit and adjust their strategic orientation as their businesses develop.

Food quality is a multi-dimensional concept comprising both objective and subjective components. Quality as defined from an industry perspective usually relies on different instrumental assessment and on ratings of “experts” which may not necessarily align with consumers’ perception of quality. The purpose of this paper is to deal with consumers perceptions of intrinsic quality in coffee from a sensory scientific and behavioral economic perspective.

In a blind taste test (n=205), naïve consumers tasted two cups of coffee and decided which they preferred. The two coffees varied greatly in their “objective” quality (based on expert grading) and retail value. Consumers were then revealed that one of the cups contained a coffee that was much more expensive than the other, and that they could get a free cup of their preferred coffee if they could correctly identify the most expensive one.

The results showed that preferences were equally distributed among the high- and low-quality samples, and that consumers did not perform better than chance level in the identification task. These results suggest that current grading systems used in the industry may be poorly correlated with the way consumers actually experience coffee, and thus that quality inference in the marketplace is more likely influenced by external cues (e.g. brand, label and price) than to intrinsic product quality. Nevertheless, the results also show that consumers who correctly answered the identification task were also significantly more likely to prefer the high-quality sample. This tentatively suggests that better sensory expertise is correlated with a preference for higher quality, though future studies are needed to confirm the correctedness of this interpretation.

This work highlights the difficulty of objectively defining food quality, and the limited usefulness of experts’ ratings widely used in the industry. Managerial implications of these findings, as well as implications for consumer policy, are discussed.