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Article
Publication date: 12 September 2017

Johan Bruwer and Elton Li

Since the publication of Van Raaij and Verhallen’s seminal work in European Journal of Marketing in 1994, identifying the domain-specific market segmentation approach as…

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1049

Abstract

Purpose

Since the publication of Van Raaij and Verhallen’s seminal work in European Journal of Marketing in 1994, identifying the domain-specific market segmentation approach as one of the most feasible for segmenting markets, there has been surprisingly limited development in this field, with the food domain as the only exception. This study aims to develop a methodological approach using latent class mixture modelling as contribution in the domain-specific market segmentation field.

Design/methodology/approach

This study captures the AIO lifestyle perspective using a domain-specific 80-item algorithm which has the wine (product) domain as its focus. A sample size of 811 consumers is used from data collected by means of the CATI approach.

Findings

The authors use four criteria for model selection: comparison of the Bayesian information criterion (BIC) statistic, comparison of classification error, verification of the interpretation of the derived segments and, finally, use of the conditional bootstrap procedure to test whether the selected model provides a significant improvement over the previous model. The five-segment model option yields a minimum BIC, the classification error measure is minimal and is easier to interpret than the other models. Segment descriptions for the five identified lifestyle-based segments are developed.

Research limitations/implications

Segmentation by traditional k-means clustering has proven to be less useful than the more innovative alternative of mixture regression modelling; therefore, the authors identify segments in the market on the basis of individuals’ domain-specific lifestyle characteristics using a latent class mixture modelling approach.

Practical implications

Following the attainment of a clear and robust market segmentation structure, the simultaneous analysis of the lifestyles, demographics and behaviours of consumers as nexus of the domain-specific segmentation approach, provides rich and valid information accurately informing the market segment descriptions.

Originality/value

The authors make a substantive contribution by developing a methodological approach using latent class mixture modelling; the first of its kind in the area of domain-specific segmentation. Next, they use the discriminant and/or predictive validity of the 80-scale items to predict cluster membership using the WRL algorithm. Finally, the authors describe the identified market segments in detail and outline the practical implications.

Details

European Journal of Marketing, vol. 51 no. 9/10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 9 January 2017

Johan Bruwer, Brigitte Roediger and Frikkie Herbst

The purpose of this paper is to illustrate the use of a domain-specific research instrument (the wine-related lifestyle (WRL)) to determine the different lifestyle-related…

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1768

Abstract

Purpose

The purpose of this paper is to illustrate the use of a domain-specific research instrument (the wine-related lifestyle (WRL)) to determine the different lifestyle-related wine market segments in a country and compare the findings cross-culturally.

Design/methodology/approach

The research instrument included 48 psychographic activities, interests and opinions (AIO) statements, plus socio-demographic, product consumption and purchasing questions. A final sample of 376 South African wine consumers was utilised, whereon exploratory and confirmatory factor analysis, combined with Hough’s Euclidean test, were applied to determine the existence of clusters (segments), assign descriptions to them, and link these to product consumption data.

Findings

Five wine segments recurred when comparing wine market segmentation studies cross-culturally. This means that cross-culturally, similar types of people drink wine with similar AIOs towards wine. In the South African market, four of these segments were identified.

Research limitations/implications

This study achieved a robust lifestyle-based market segmentation algorithm which can be used by researchers in different country environments for wine as a domain-specific product.

Originality/value

The contribution of this research is threefold in that it tested the WRL instrument in a cross-cultural context which is the first time this has been done; in the process it interpreted the wine consumer segments in South Africa for the first time; using a WRL-based (AIO) approach. The study demonstrated that market segmentation based on psychographic (lifestyle) behaviour is strengthened when supported by two additional segmentation methods, namely, socio-demographics and product involvement (purchasing and consumption).

Details

Asia Pacific Journal of Marketing and Logistics, vol. 29 no. 1
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 1 January 2003

Trent Johnson and Johan Bruwer

The wine industry has been criticised in the past for adopting a mass‐marketing approach but in the current ultra‐competitive wine market the inevitable outcome of a…

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1399

Abstract

The wine industry has been criticised in the past for adopting a mass‐marketing approach but in the current ultra‐competitive wine market the inevitable outcome of a production rather than marketing orientation is almost certain failure. Whereas the Australian domestic wine market is currently experiencing a low growth rate, a precursor to any future growth strategy is a clear understanding of the market. Acceptance of market segmentation as a strategy to target consumers more effectively enhances the focus and differentiation essential to achieve growth in the wine market. Recently a new segmentation approach of lifestyle based on a cognitive deductive perspective that makes lifestyle specific to the area of wine consumption was developed by Bruwer et al. (2001). This process included the development of a wine‐related lifestyle (WRL) measurement research instrument and the identification of five wine‐related lifestyle market segments. In this paper, a study conducted in the Australian wine market on 363 consumers to empirically confirm or disconfirm the previously identified five wine‐related lifestyle segments is reported on. The further theoretically‐driven development and improvement of the WRL research instrument is also described.

Details

International Journal of Wine Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 18 November 2019

Wang Yabin and Jiagui Li

The purpose of this paper is to explore China’s online wine market segmentation on the basis of the wine-related lifestyle (WRL). Moreover, this study can provide further…

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4181

Abstract

Purpose

The purpose of this paper is to explore China’s online wine market segmentation on the basis of the wine-related lifestyle (WRL). Moreover, this study can provide further understanding and reference about China’s wine market segmentation research, which is limited at present. This work can be helpful for those who want to do further research in the Chinese wine market. It is good for wine importers wanting to import wine to China to understand the Chinese wine consumers.

Design/methodology/approach

Survey data were obtained from a sample of 3,369 participants through cooperation between the College of Enology and the Yesmywine.com website. Questionnaire items included gender, age, area distribution, unit price, bottles consumed, drinking frequency, drinking time, wine-related knowledge, etc. Combined with the influence factors of the WRL, a structural equation model was developed. The data analysis, particularly employing principal component analysis, enabled the identification of five market segments.

Findings

Five distinct segments were identified within the wine market and designated as follows: wine official consumption type enthusiastic fancier; enjoyment consumption; fashionable consumption; and new, young wine drinkers.

Research limitations/implications

The research data were derived from Yesmywine, one of the largest online wine sale platforms. However, the impact of yesmywine is much smaller compared with Tmall and Taobao and Jingdong. In this paper, we can see that WRL is increasingly becoming a part of Chinese people’s daily lives, especially for the enthusiastic and fancier wine consumers, which is the official type of wine consumer. Next, an analysis of time series under the data of the near future years should be conducted to find the online wine segmentation market variation trend. Moreover, it is important to conduct cross-culture comparison between the Chinese and Australians. Brand positioning can be improved by better understanding China’s online wine market segmentation.

Practical implications

WRL segmentation is valuable for the wine importers and producers in west France, Italian, Germany and so on, as they want to develop China’s wine market and understand the mindset of Chinese wine consumers. The wine importers in China should focus more on consumers that enjoy wine along with newer and younger wine drinkers.

Originality/value

This paper analyzes a large sample (3,369) and therefore is useful for understanding online wine market segmentation and wine consumption behavior in China owing to China’s limited wine market segmentation literature. This paper is the first to use WRL tool to segment China’s online wine market. Moreover, the research data have reference value for those who want to learn more about China’s online wine market, as yesmywine is one of the largest online wine-sale platforms. It also gives some managerial implications for wineries and wine marketers that will be helpful to wine companies in understanding the emerging Chinese wine market and in enacting wine marketing strategies more effectively.

Details

British Food Journal, vol. 122 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 23 March 2010

Won-Moo Hur, Hyun Kyung Kim and JungKun Park

The primary purpose of this research is to draw out in-depth lifestyle characteristics which can be used in new product development and marketing. To achieve this goal…

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2706

Abstract

Purpose

The primary purpose of this research is to draw out in-depth lifestyle characteristics which can be used in new product development and marketing. To achieve this goal, this research aims to explore US female household consumers ' lifestyle structures regarding food-related AIO and identify the values that discriminate best among different consumer segments.

Design/methodology/approach

A total of 518 US female consumers aged between 20 and 65 participated based on multi-stage stratified random selection of age. The cluster analysis was performed to identify meaningful segments.

Findings

Six segments of Wellbeing-oriented, Social- and dining-oriented, Family-oriented, Innovation- and action-oriented, Price-conscious, and Convenience-oriented were found. These segments show differences in motivation for buying kitchen appliances, evaluation of quality aspect of foods, consumption situations, and in socio-demographic characteristics.

Research limitations/implications

These results identify that a product-specific lifestyle helps one to understand the market better than product function even in a technology-oriented industry. Consumer electronics companies should concentrate on their potential target market and understand their specific needs.

Originality/value

The study found that refined and modified AIO-based research is effective in terms of consumer lifestyle analysis. In addition, employing the combination of multivariate analytical techniques made it possible to attain the major objectives of the study

Details

British Food Journal, vol. 112 no. 3
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 1 February 2002

Ana M. González and Laurentino Bello

The swift and wide‐ranging changes that present‐day society is undergoing are leading to an increasing personalization in consumer behaviour patterns. These are…

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27500

Abstract

The swift and wide‐ranging changes that present‐day society is undergoing are leading to an increasing personalization in consumer behaviour patterns. These are increasingly less well explained by socio‐demographic and economic criteria. This effect seems to be particularly well reflected in tourism. As one of the chief characteristics of this market is its heterogeneity, there is a need to include other variables, such as lifestyle, in order to segment it more adequately. This would permit a greater depth of knowledge of the variables influencing tourist behaviours, rendering them accessible to businesses, which could thus better satisfy tourists’ needs and wants by matching the services they offer more efficiently to them. Defines the construct “lifestyle” based on the activities, interests and opinions approach. Offers in addition certain innovations of scholarly interest, but also of practical use for business. Although this variable is not a brand‐new concept, it is still being actively researched.

Details

European Journal of Marketing, vol. 36 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 January 2007

Sangho Kim, Euidong Yoo and Paul M. Pedersen

This study involved analysis of the consumption behaviours of spectators in the K-League (South Korea). Its dual purpose was to cluster spectators into homogeneous groups…

Abstract

This study involved analysis of the consumption behaviours of spectators in the K-League (South Korea). Its dual purpose was to cluster spectators into homogeneous groups on the basis of attitudes towards game attendance, and to define the segments obtained on the basis of the demographic and lifestyle profiles of the spectators. Multiple steps were taken to analyse the data from a survey of 967 spectators. This revealed four distinct groups - promotion-concerned, place-concerned, price-concerned and indifferent.

Details

International Journal of Sports Marketing and Sponsorship, vol. 8 no. 2
Type: Research Article
ISSN: 1464-6668

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Article
Publication date: 26 November 2021

Kwon Jung and Jihye Jung

Aging is a global phenomenon for many countries, and South Korea has become the fastest aging country in the world. The purpose of this study is to identify and validate a…

Abstract

Purpose

Aging is a global phenomenon for many countries, and South Korea has become the fastest aging country in the world. The purpose of this study is to identify and validate a representative typology of older Koreans based on their lifestyle and value orientations. This study also makes a longitudinal comparison of these segments in two waves using similar survey data collected in 2009 and 2017 and examines any meaningful changes that occurred during the periods.

Design/methodology/approach

Using survey data collected from 750 older adults living in four major cities in Korea, this study conducted factor and cluster analysis to identify lifestyle segmentation of elderly Koreans. Both descriptive and mean comparison analyses are followed to characterize the segments with relevant demographic and behavioral variables. In addition, this study makes a longitudinal comparison of these segments in two waves (2009 and 2017) and examines any meaningful changes that occurred during the periods.

Findings

Six distinctive lifestyle segments of elderly Koreans are identified. The longitudinal comparison reveals some changes that occurred during the period. The level of importance of values and things to own has been declined during the period on most of the aspects, which can be interpreted that older Koreans become more realistic and practical. The level of life satisfaction between the two periods turned out to be similar. However, satisfaction in material comfort and health has been improved during the period, which means that the perception of their financial and physical aspects has been improved over the years.

Originality/value

First, based on Tempest et al.’s three grey discontinuity framework (2002), the segmentation model provides comprehensive coverage of psychological transitions experienced by older people due to economic, physical and mental discontinuities with age. Second, this might be the first longitudinal study to examine the changes in segmentation over time in terms of the lifestyle of older adults. Practically, the findings of this study provide useful insights for policymakers in developing aging-related policies as well as for marketers who are interested or currently doing business in Korea or Asian consumer markets.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 1 April 1998

Lois Shufeldt, Barbara Oates and Bobby Vaught

The conflicting research on the elderly has led many to question the wisdom of using age alone to segment the market. Psychographics, or lifestyle groupings, has emerged…

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2553

Abstract

The conflicting research on the elderly has led many to question the wisdom of using age alone to segment the market. Psychographics, or lifestyle groupings, has emerged as a more robust technique of identifying distinct categories of the 65 and older market. An activities, interests, and opinions (AIO) questionnaire from 386 respondents provided data to identify five distinct groups of elderly shoppers. Significant differences were found among the five lifestyle clusters with regard to the perceived importance of various factors which influence purchase behavior: price, commercial influences, and personal influences.

Details

Journal of Consumer Marketing, vol. 15 no. 2
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 22 March 2011

Thomas A. Brunner and Michael Siegrist

The main objectives of this study are to develop a comprehensive questionnaire and to analyze the nature of wine market segments. Past research has focused on involvement…

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5574

Abstract

Purpose

The main objectives of this study are to develop a comprehensive questionnaire and to analyze the nature of wine market segments. Past research has focused on involvement, lifestyle or motives as segmentation criteria. The present study seeks to combine all three perspectives.

Design/methodology/approach

A postal paper‐and‐pencil survey was sent out randomly using addresses from the telephone book in the German‐speaking part of Switzerland, resulting in a final sample size of n=929.

Findings

A principal component analysis identified 17 factors with satisfactory reliability coefficients. Using factor scores, a hierarchical cluster analysis was run, resulting in six wine consumer segments. These segments were further analyzed and described as: the price‐conscious wine consumer; the involved, knowledgeable wine consumer; the image‐oriented wine consumer; the indifferent wine consumer; the basic wine consumer; and the enjoyment‐oriented, social wine consumer.

Research limitations/implications

The methodology used to identify the wine consumer segments was exploratory. It is recommended that future work should continue to develop and validate such a methodology for the wine industry.

Practical implications

Wine producers and marketers should appreciate that there are different segments of wine consumers. The information provided by this research is useful for marketers who seek to gain a competitive advantage through differentiation.

Originality/value

This paper contributes to the academic literature by presenting a useful extension to the available segmentation literature. Combining different approaches for segmenting a market proved to be a fruitful method in identifying wine consumer segments.

Details

British Food Journal, vol. 113 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

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