Consumer segmentation based on usage of sales channels in the German wine market

Abstract

Purpose – The purpose of this study is to test the segmentation based on the usage of sales channels and to compare the segments with each other in terms of socio-demographic and behavioural characteristics. Design/methodology/approach – This study was conducted using representative data collected in Germany through a face-to-face interview. 2,000 German consumers answered questions towards the usage of different sales channels when purchasing wine as well as socio-demographic and other behavioural questions. A hierarchical cluster analysis was run, to classify the respondents into segments. Findings – The results illustrate the usefulness of this kind of segmentation and show significant differences between the six consumer groups: discount-customers, food-retail-customers, supermarket-customers, cellar-door-customers, wine-store-customers and multichannel-customers. These segments differ in their socio-demographic as well as in their behavioural structure. Furthermore, the six segments could be split into two groups depending on their average purchase value: a basic group and a premium group. Practical implications – This segmentation provides an analysing tool for the German retailers, which is able to identify the loyal and potential consumers of the different sales channels. Originality/value – This segmentation was conducted using the purchase activity of German consumers in different sales channels. This segmentation approach has been never used to identify, describe and classify wine consumers.