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The Chinese wine market: a market segmentation study

Hong Bo Liu (School of Business, James Cook University, Townsville, Australia)
Breda McCarthy (School of Business, James Cook University, Townsville, Australia)
Tingzhen Chen (School of Business, James Cook University, Townsville, Australia)
Shu Guo (Asia-Australia Business College, Liaoning University, Shenyang, China)
Xuguang Song (Institute of National Accounts, Beijing Normal University, Beijing, China)

Asia Pacific Journal of Marketing and Logistics

ISSN: 1355-5855

Article publication date: 3 June 2014

6791

Abstract

Purpose

The purpose of this paper is to examine how the Chinese wine market can be meaningfully segmented and to explore marketing implications for the Australian wine sector.

Design/methodology/approach

The research is descriptive in nature, using an online survey to collect quantitative data on wine consumer behaviour. A total of 407 responses were obtained. Data analysis included descriptive analysis (frequency distributions) and cluster analysis.

Findings

The research identifies three clusters of wine consumers: “the extrinsic attribute-seeking customers”, “the intrinsic attribute-seeking customers” and “the alcohol level attribute-seeking customers”. These groups of consumers were categorised using a behavioural (benefit) segmentation base.

Research limitations/implications

The use of an internet survey and convenience sample limits generalisation of the findings. The adoption of a behavioural basis in conducting the segmentation is a limitation. The use of more complex segmentation bases, such as psychographics, may yield a richer understanding of the Chinese wine consumer in future studies.

Practical implications

The customer profiles provide Australian wine marketers with an insight into Chinese wine consumer behaviour. Brand positioning can be improved by ensuring that the brand emphasises certain product attributes which the segments value when choosing wine.

Originality/value

Little previous research on market segmentation has been conducted in mainland China. For Australian wine marketers, this study provides a baseline study into market segmentation and may assist with targeting and brand positioning decisions.

Keywords

Acknowledgements

This research was supported by a grant from the Faculty of Law, Business and Creative Arts, James Cook University. Professor Zhou, in the School of Business, James Cook University, is thanked for his assistance in the development of the questionnaire and for acting as a mentor.

Citation

Bo Liu, H., McCarthy, B., Chen, T., Guo, S. and Song, X. (2014), "The Chinese wine market: a market segmentation study", Asia Pacific Journal of Marketing and Logistics, Vol. 26 No. 3, pp. 450-471. https://doi.org/10.1108/APJML-07-2013-0089

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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