A fine wine instrument – an alternative for segmenting the Australian wine market

Abstract

Purpose – The purpose of the study was to devise an instrument, labelled the Fine Wine Instrument (FWI), to measure the fine wine behaviour of respondents and then use that base to segment the consumer sample. The behaviour of those respondents who scored highly on the FWI was examined in detail. Design/methodology/approach – An online survey collected quantitative information from a convenience sample of Australian wine consumers (n = 1,017). Using the FWI as the segmentation base, cluster analysis identified three segments of consumers, denoted “Wine Enthusiasts”, “Aspirants” and “No Frills” wine drinkers, and their respective wine-related behaviours were examined. Findings – The Wine Enthusiasts’ segment consumed more wine, spent more money on wine and were more knowledgeable about wine than the other two segments. The demographics of the Wine Enthusiasts’ segment indicated that the members were not consistent with the conventional view of wine connoisseurs, as many were under the age of 35. Their lifetime value to the wine industry was highlighted along with potential targeting strategies. Some structural elements of the Australian domestic wine market were also noted. Practical implications – A segmentation base of a wine market is presented, which the authors argue provides a more sophisticated analysis than other commonly used segmentation bases. Originality/value – This study was the first to segment the Australian market using the recently developed FWI. The study provides the latest information on this market and deeper consumer insights that may permit better business-to-consumer engagement.