scholarly journals Domain-specific market segmentation: a wine-related lifestyle (WRL) approach

2017 ◽  
Vol 29 (1) ◽  
pp. 4-26 ◽  
Author(s):  
Johan Bruwer ◽  
Brigitte Roediger ◽  
Frikkie Herbst

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).

2017 ◽  
Vol 29 (6) ◽  
pp. 1560-1579 ◽  
Author(s):  
Armand Viljoen ◽  
Martinette Kruger ◽  
Melville Saayman

Purpose This paper aims to identify and cluster visitors to a premier South African cheese festival based on their motivation for attending the festival. Design/methodology/approach A structured questionnaire was used to collect the data from visitors over the three days of the festival, in which 519 usable questionnaires were included in the analysis. Three stages of the analysis were employed: a factor analysis examining the visitors’ motivation to attend the festival, a cluster analysis based on the motives identified by the factor analysis and an analysis of significant differences between the different market segments. Findings The general profile of respondents was similar to the profile of culinary tourists found in other studies. Furthermore, five key motives were identified, of which this combination has not been previously identified in the literature. The cluster analysis identified three distinct clusters, with heterogeneous behavioural and socio-demographic profile identifiers. Practical implications The value that this market segmentation technique holds regarding the marketing and branding of a(n) event/festival is that it could help managers/marketers to promote better culinary events/festivals in South Africa, by offering unique attributes that attract culinary visitors. Originality/value To the authors’ knowledge, this study is a first attempt to segment culinary visitors based on motivational factors, especially within the South African context. Clustering based on motives proved to be a useful market segmentation tool and proposes a 3-S typology of visitors to food-related events/festivals, namely, social, serious and selective epicureans.


2015 ◽  
Vol 33 (1) ◽  
pp. 23-40 ◽  
Author(s):  
Muahmmad Kashif ◽  
Sharifah Suzana Wan Shukran ◽  
Mohsin Abdul Rehman ◽  
Syamsulang Sarifuddin

Purpose – The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context. Design/methodology/approach – The dimensionality of the PAKSERV scale is examined with confirmatory factor analysis. A survey approach is adopted to collect data from 300 Islamic banking customers in Kuching, Malaysia. Findings – Results reveal an excellent model fit for the PAKSERV scale in collectivist cultural context of Malaysia. All dimensions of PAKSERV are validated except reliability. The issue of non-validity of the reliability dimension in an Islamic banking context is explained by extant literature. Practical implications – Islamic banks are recommended to focus on all the PAKSERV scale dimensions to impart service quality. Given a collectivist cultural setting, a “network marketing” approach is recommended to maintain a desirable level of customer satisfaction and loyalty. Originality/value – The PAKSERV scale has been employed for the first time to investigate the service quality-loyalty path in a collectivist cultural context. The validity of the PAKSERV scale has been operationalized for the first time in a collectivist cultural context.


2017 ◽  
Vol 51 (9/10) ◽  
pp. 1552-1576 ◽  
Author(s):  
Johan Bruwer ◽  
Elton Li

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.


2014 ◽  
Vol 26 (3) ◽  
pp. 450-471 ◽  
Author(s):  
Hong Bo Liu ◽  
Breda McCarthy ◽  
Tingzhen Chen ◽  
Shu Guo ◽  
Xuguang Song

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.


Significance The first budget since new President Cyril Ramaphosa election by parliament last week, it outlines the National Treasury’s response to a 48.2-billion-rand (4.2 billion dollars) tax revenue shortfall for 2017/18. The government has raised the rate of value-added tax (VAT) for the first time since 1993, while committing to free higher education for students from poorer and working-class families, and to tackling the debt burden. Impacts Increased excise duties on luxury goods will slow demand for these items, while an increased fuel levy will drive consumer goods inflation. Reduced infrastructure spending at the provincial level could hamper service delivery. Ongoing public sector wage talks could increase pressure on budgetary targets.


2019 ◽  
Vol 122 (8) ◽  
pp. 2385-2401 ◽  
Author(s):  
Wang Yabin ◽  
Jiagui Li

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.


2018 ◽  
Vol 30 (3) ◽  
pp. 277-291 ◽  
Author(s):  
Debbie Ellis ◽  
Albert Caruana

Purpose What consumers know about a product affects many aspects of their behaviour and is particularly important for marketers to understand when it comes to developing marketing strategy. The purpose of this paper is to understand the components of consumer knowledge of wine and to investigate these as a potential basis for wine market segmentation and targeting. Design/methodology/approach A quantitative, descriptive research design is adopted. An online survey consisting of three sections, measuring objective knowledge, subjective knowledge and classificatory variables, was developed and fielded, and data were collected from US wine consumers via Amazon.com’s MTurk platform. The psychometric properties of the measures used were determined, and a two-dimensional segmentation typology was developed. Findings The study supported the positive relationship between objective and subjective wine knowledge, while the combination of the two components led to the identification of four groups of consumers titled: neophytes, snobs, modest and experts. Practical implications In a market that is highly fragmented, consumer knowledge about wine has been shown to provide a useful basis for wine market segmentation allowing for different marketing activities to target the four groups identified. Originality/value While other research has considered either objective or subjective knowledge on its own, this study’s major contribution is the investigation of the wine consumer segments on the basis of the combination of objective and subjective consumer knowledge. A consumer knowledge type grid is developed that has implications for marketing segmentation and targeting. Implications of this new typology for future research are identified.


2014 ◽  
Vol 25 (4) ◽  
pp. 421-430 ◽  
Author(s):  
Maria A.O. Dos Santos ◽  
Göran Svensson ◽  
Carmen Padin

Purpose – The purpose of this paper is to describe a “fivefold bottom line” approach in implementing and reporting corporate efforts of sustainable business practices. Design/methodology/approach – This viewpoint from industry is based on the content analysis of the South African retail chain Woolworths. The data are gathered and derived from the company's comprehensive annual and sustainability reports from 2008 to 2011 and the company's press releases for this period focusing on their efforts of implementing and reporting sustainable business practices. Findings – A lesson learned from the presented “fivefold bottom line” approach to implement and report their corporate efforts of sustainable business practices is that it is adapted to fit and make sense in a specific market and society. The triple bottom line approach is usually derived from, or commonly based upon, a western perspective on the market and society in literature. Research limitations/implications – The authors argues that insights from industry of implementing and reporting sustainable business practices based upon different corporate “bottom line” approaches are required in literature. Practical implications – The authors propose that the “triple bottom line” approach may need to be commonly adapted to the country and cultural context in focus, which is not normally done, but templates are used. Originality/value – Triple bottom line reporting tends to follow common approaches how it is done. There is rarely seen adapted or modified “bottom line” approaches to specific market and societal characteristics in literature.


2018 ◽  
Vol 31 (3) ◽  
pp. 553-568 ◽  
Author(s):  
Lida Esperanza Villa Castaño ◽  
Jesús Perdomo-Ortiz ◽  
William Fernando Durán León ◽  
Sebastián Dueñas Ocampo ◽  
Florina Guadalupe Arredondo Trapero

Purpose The purpose of this paper is to find evidence of construct validity in a Mexican population for a socially responsible consumption (SRC) measurement scale originally proposed for Colombia. Design/methodology/approach Using a quantitative approach and a correlational scope, factorial invariance and differential item functioning analyses were performed on the SRC measurement scale based on data from 323 Colombian graduate students and 456 Mexican students. Findings The empirical evidence confirms that the factor structure of the SRC measurement scale applied in Colombia remains valid in the Mexican context. Research limitations/implications Limitations pertain to the attitudinal measurement scale and the non-representativeness of the chosen samples. Practical implications When identifying a structure for SRC, particularly considering the formulation of marketing strategies and business reputation, companies should consider the new criteria of buying consumption. Originality/value For the first time in Latin America, an SRC measurement scale is constructed, and its construct validity is evaluated for two countries: Mexico and Colombia. The authors thus provide empirical evidence for the hypothesis that SRC measurement is contingent on the expression of measurement considering the socioeconomic and cultural context in which the study is conducted.


New Medit ◽  
2020 ◽  
Vol 19 (4) ◽  
Author(s):  
Carla Ferreira ◽  
João Rebelo ◽  
Lina Lourenço-Gomes ◽  
Elisete Correia ◽  
Philippe Baumert ◽  
...  

The wine market is very heterogeneous and complex, being the knowledge of the behaviour and attitudes of consumers a key tool to design efficient marketing plans, namely in countries that are traditionally wine producers and consumers, such as Portugal. In this country, Port wine is an economic and cultural icon, but, in the last decade, total sales have been decreasing. Despite this trend the domestic consumption has been gaining relevance and therefore a focus to reverse the negative cycle of total sales. The main goal of this paper is to analyse the profile and behaviour of domestic Port wine consumers, identifying homogeneous market segments. For this purpose, an online survey was applied and random sample of 678 Portuguese Port wine consumers was collected. Using multivariate statistical techniques, three profiles of purchasers/consumers emerged: experienced, less experienced and inexperienced consumers. This segmentation shows that Port wine consumers can be grouped according to their involvement with the product, consumption occasion and price they are willing to pay. In addition to the academic contribution of wine market segmentation, the paper provides useful insights to be used in designing marketing plans, both by institutional stakeholders and wineries.


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