A Study on Determinants of French Wine Demand for French Wine Consumers

Abstract

Purpose - This study attempts to estimate influencing factors through the establishment of a demand model for wine selection attributes centering on the French region of Bordeaux, which has high growth potential in the future. This analysis, can be used to select a marketing strategy by presenting the direction of development of the French wine market through the analysis of factors that determine the demand for wine in Bordeaux, France. Design/Methodology/Approach - This study was conducted for two months using survey data collected from the Bordeaux region, targeting French with experience drinking wine mainly in the Bordeaux region of France. To examine the influence on the French wine selection attributes and usage patterns, influencing factors were estimated through factor analysis and the establishment of a Truncated Poisson (TP) model. Findings - As a result of estimation by applying the wine TP model in Bordeaux, France, it was found that variables related to socioeconomic characteristics had a positive effect on occupation. The wine selection attribute factor was found to have a positive effect on grape variety, quality grade, and inner characteristics. In addition, it was found that this had a positive effect on the consumption of red wine and the consumption of white wine in one occurance. Research Implications - Considering the limitations of the lack of empirical approaches to the marketing strategy of the wine market in Bordeaux, France, through the estimated results of this analysis, an attempt was made to enter the French wine market with a substantial wine consumption promotion and sales strategy in the French wine market. This can help to provide a clues for suggesting marketing plans for the Korean wine industry.