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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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1398

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: 26 February 2019

Marc Dressler and Ivan Paunovic

The purpose of this study is to provide insight into characteristics of visitor demand for a regionally oriented vinotheque (wine bar and shop) at a UNESCO world heritage…

Abstract

Purpose

The purpose of this study is to provide insight into characteristics of visitor demand for a regionally oriented vinotheque (wine bar and shop) at a UNESCO world heritage destination in Germany. The research especially focuses on expected offer components for a wine bar and shop, including wine-related products and services, to test the theoretical notion of blurred division between product and service offerings. The literature review has revealed that implications of this conceptual notion on wine bar and shop offer creation could be profound as there are different types of wine bar and shops with different product–service combinations. Moreover, the offer creation needs to take into account the overall needs of wine bar and shop visitors and consider them as experience seekers and not necessarily utility-maximizing players. In this sense, the paper expands previous research on vinotheques that primarily took the wine retail perspective.

Design/methodology/approach

The study deals with wine-related sales, offer design and the importance of tourism and hospitality for wine sales in a non-growing wine market. However, the concept of increasing wine sales through tourism and hospitality brings to the forefront the issues of creating integrated offerings of products and services. This is why, the study deploys the concepts of hybrid products and experience economy. The primary data have been collected via self-administered, paper-based questionnaire (Appendix 2) amongst visitors at the St. Goar/Loreley tourist destination. The goal has been to reveal the importance of a wine bar and shop as a wine sales channel, whether visitors are interested in visiting a wine bar and shop, what major expectations they have entering a vinotheque, as well as what major offer components of products and/or services are they interested in. Total sample size was N = 400. Major statistical procedure deployed was descriptive statistics, as well as PCA (principal component analysis) of expectations and offer analysis in regards to products and services.

Findings

By deploying the PCA on the data regarding interest in buying wine-related products and services, three offer configurations have been extracted, out of which only one is purely related to products, whilst the other two are hybrid products, meaning a combination of wine-related products and services. Relevance of architectural design illustrates that visitors also seek experience. These findings confirm previously discussed theories on the importance of integrating products and services into hybrid products and creating experience with a suitable combination of products and services.

Research limitations/implications

Data collection has taken place in a confined timeframe (two summer months). No active measures have been taken to ensure the validity of the sample through quotas or similar techniques. The research sample and location are somewhat limited for making conclusions in other geographical regions, but replicating the study in different contexts can add to the comparability of the results on the level of Germany, but also internationally. The empirical evidence for superior customer value of hybrid offerings and integrating services into product-centric offer design is of paramount importance for selling wine in a highly competitive market in absence of market growth. Wine bar and shop allows to differentiate the offer by creating wine-related experience through a combination of product (wine and wine-related products), hospitality/gastronomic services and tourism services. The insights also illustrate the idea of new market opportunities via connecting converging industries.

Practical implications

The study contributes to close a gap identified in the literature review that German wineries lag wine-tourism activities. It provides advice in regards to offer design and hybrid offerings and an experiential experience supported by architectural design. Such an approach offers the potential to win market share in a non-growing market – an ambition of the players in the market but also an obvious challenge.

Social implications

The findings contribute to regional development. Furthermore, arguments for cooperative behavior are provided. This should also help to minimize free ridership and its negative social implications.

Originality/value

The paper adopts a multidisciplinary approach to the creation of wine bar and shop offer. The results point out that offerings should be created around a core wine tourism product – regional and cellar door offer – and be expanded by “food design” – components, attractive architectural elements, as well as web shop services, thereby creating an advanced wine-related experience. It confirms the importance of theoretical concepts such as experience economy, hybrid products and solution provision in the case of wine bar and shop, by testing these concepts on the group of visitors at a German wine and cultural destination.

Details

International Journal of Wine Business Research, vol. 31 no. 1
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 2 March 2020

Linda Bitsch, Jon Henrich Hanf and Jens Rüdiger

Due to high competition in the agricultural industries and heterogeneous products, the setting of prices for direct sales to consumers is difficult. In recent years…

Abstract

Purpose

Due to high competition in the agricultural industries and heterogeneous products, the setting of prices for direct sales to consumers is difficult. In recent years, pay-what-you-want (PWYW) is discussed as an innovative pricing strategy. This study analyses whether the implementation of a pay-what-you-want strategy can be successful and if there is a willingness to pay from the consumers for wine touristic offers. Furthermore, the study analyses, in general, how suitable experiments are as a research tool.

Design/methodology/approach

A PWYW mechanism creates a situation of strategic decision- making that can be modelled as a game. This can be transferred to an experimental setting. The results were analysed with a two-sided MWU test (Stata, ranksum) in order to determine whether the differences are statistically significant.

Findings

Participants pay positive prices, although theory predicts the opposite. PWYW is a good strategy to analyse the willingness-to-pay for heterogeneous and homogenous services or products. Information or reference prices have no clear influence on the willingness to pay, confirming results of other studies. There is no influence of gender and age on the payments.

Practical implications

In general, consumers have a willingness to pay positive prices for wine- touristic offers. The willingness to pay is not different for people with or without wine knowledge. For the chosen variable information and reference price, wine producers do not have to address target groups differently.

Originality/value

It is the first study which analyses the pay-what-you-want mechanism as a tool for wine touristic activities. In addition, an experimental approach was used to analyse an innovative, consumer-based price-setting strategy.

Details

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

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Article
Publication date: 19 December 2019

Natalia Vorobiova, Patrícia Pinto, Pedro Pintassilgo and Joice Lavandoski

This paper addresses the motivations of tourists who visit the region of La Rioja, Spain, which is well known for its internationally recognized, high-quality wines, yet…

Abstract

Purpose

This paper addresses the motivations of tourists who visit the region of La Rioja, Spain, which is well known for its internationally recognized, high-quality wines, yet remains understudied as a wine tourism destination. The paper aims to ascertain whether tourists are attracted to La Rioja because of its famous wines and wine-related activities or if other motivations exist.

Design/methodology/approach

The data were derived from 217 questionnaires regarding tourists’ motivations. A tourist survey was applied in La Rioja’s capital city, Logroño, and segmentation analysis was undertaken. The data were first grouped into five factors regarding motivations for one’s visit. These factors were then used to create two clusters: “wine tourists” and “other tourists”.

Findings

The results enabled us to detect different segments of tourists. The existence of two clusters suggests that tourists are motivated to visit the region for various reasons that are not necessarily wine-related. Thus, the region should be marketed to tourists beyond the theme of wine, as there is a demand for diverse experiences.

Originality/value

Using the push and pull theory, this study contributes to the literature on the profile of visitors to wine tourism destinations by identifying differences in terms of motivations and other personal characteristics between “wine tourists” and the “other tourists”. It also adds to the few existing studies on wine tourism segmentation in Spain through its focus on La Rioja, which is one of the most famous Spanish wine tourism destinations.

Details

International Journal of Wine Business Research, vol. 32 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

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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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4165

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: 1 January 2004

Trent Johnson and Johan Bruwer

Wine is widely regarded as a ‘complicated’ product and for the majority of consumers the purchasing of wine in the retail situation evokes considerable risk. Marketers are…

Abstract

Wine is widely regarded as a ‘complicated’ product and for the majority of consumers the purchasing of wine in the retail situation evokes considerable risk. Marketers are therefore constantly and increasingly trying to demystify wine in order to reduce the perceived risk levels of consumers in the purchase situation. Most previous research in the area of perceived risk literature tended to focus on the concept of risk and its measurement rather than on risk‐reduction. This study examined the preferred risk‐reduction strategies (RRS) employed by identified wine‐related lifestyle segments in the Australian wine market and linked these strategies to the wine retail environment. Relying on favourite brands or so‐called ‘safe brand’ buying was found to rank highest as a risk reduction strategy in the commercial (under $15 per bottle) and premium‐to super‐premium ($15‐$25) price ranges while the opportunity to try before buying ranked highest in the ultra‐premium ($25) price range. The results obtained have major implications for retailers and form the foundation for a competitive advantage. It also indicates the direction for future research in this strategically important area of wine consumer behaviour.

Details

International Journal of Wine Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 14 March 2019

Yu-Chin Jerrie Hsieh, Zui Chih Lee and Ping Yin

The purpose of this study is to delineate the role of wine at hotels from the customer’s perspective by analyzing New York City hotel reviews posted on TripAdvisor.

Abstract

Purpose

The purpose of this study is to delineate the role of wine at hotels from the customer’s perspective by analyzing New York City hotel reviews posted on TripAdvisor.

Design/methodology/approach

This study used content analysis to study 26,831 wine-relevant reviews that had been posted on TripAdvisor’s New York City hotels by April 12, 2018. Two trained coders quantified and tallied the presence of themes based on the pre-established coding scheme.

Findings

Wine was mentioned in the online reviews in expressing positive, negative or neutral hotel experiences. Of the 877,616 New York City hotel reviews, about 3 per cent contained the keyword “wine.” The three most frequently mentioned wine-related positive experiences were free happy hours, a surprise bottle of complimentary wine and the fun of pairing food and wine. The top three wine-related negative experiences were pricey/expensive/overpriced wine, poor wine list and poor quality of wine. The study found that hotel guests liked wine and that it had become a significant aspect of their lodging experience.

Originality/value

This study adds value to the literature of hotel wines by divulging hotel customers’ wine-related experiences through their online comments and by providing a snapshot of hotel guests’ wine-drinking behavior. The findings can provide an insight for hotels to further the use of wine as a means to enhance guest experience and to generate additional revenue.

Details

International Journal of Wine Business Research, vol. 31 no. 1
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 31 May 2013

Eunmi Sohn and Jingxue (Jessica) Yuan

The purpose of this paper is to provide psychographic and demographic profiles of people interested in culinary tourism.

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3618

Abstract

Purpose

The purpose of this paper is to provide psychographic and demographic profiles of people interested in culinary tourism.

Design/methodology/approach

The study was conducted in the First Lubbock Wine Festival in Texas, incorporating Values and Lifestyles (VALS‐2). A questionnaire was designed to investigate the classification of culinary tourists' lifestyles and values in terms of three primary motivations such as ideals, achievement, and self‐expression including culinary tourists' activities and demographic characteristics. Factor and reliability analyses were used.

Findings

A five‐factor solution resulted in idealist, achiever, explorer, belonger and innovator. Ideals‐motivated groups were identified by idealist and belonger. Self‐expression‐motivated groups were identified by explorer and innovator. Achievement‐motivated group was identified by achiever.

Research limitations/implications

The study offers new insights and conceptualizations relevant to the analysis of culinary tourism markets, focusing on the needs and psychology of culinary tourists.

Practical implications

A better understanding of the needs and wants of culinary tourists may help tourism marketers increase the effectiveness of their promotional campaigns by targeting the appropriate audience and tailoring their messages to its psychological needs.

Originality/value

By providing a basis for predicting attitudes and behaviors of culinary tourists, this study extends the existing body of research by segmenting culinary tourists based on motivations while making travel decisions.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 7 no. 2
Type: Research Article
ISSN: 1750-6182

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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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1766

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: 10 April 2020

Poonam Sharma, Sonali Singh and Richa Misra

The purpose of this study is to understand consumers in the emerging wine market of India to ensure the best services. To this end, factors were identified to describe…

Abstract

Purpose

The purpose of this study is to understand consumers in the emerging wine market of India to ensure the best services. To this end, factors were identified to describe Indian wine consumer behavior and further segments for consumers were created based on the factors identified.

Design/methodology/approach

The research design is descriptive in nature and based on primary data. Data was collected by a structured questionnaire from 232 respondents in five major cities of India (Mumbai, Delhi NCR, Bangalore, Pune and Hyderabad). The scale was mainly adopted from wine-related lifestyle approaches.

Findings

The principal component factor analysis resulted in six factors, namely, drinking ritual, consumption reason (social), consumption reason (mood, enjoyment and relaxation), consumption practice, consumption planning and quality. Cluster analysis resulted in a three-cluster solution. These clusters were named as cautious social drinker, loner regular drinker and highly engaged drinker based on the attributes possessed.

Originality/value

The segmentation of urban Indian wine consumers will be helpful for marketers to identity and describe the differences in attributes and behaviors, to create customized promotions to match the needs.

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