Variety seeking behavior in the wine domain: A consumers segmentation using big data

Abstract

This study investigates variety seeking behavior in the wine domain. Since variety seeking depends on brand strategies and consumers’ preferences for different types of vines and denominations, a bi-dimensional perspective is adopted. Two new variety seeking measures are defined, namely the Wine Index of Diversity and Brand Index of Diversity. A finite mixture regression model is implemented to identify and characterize groups of households sharing similar variety seeking behavior in a statistically representative sample of 8,313 Italian households. Four groups are identified based on consumer characteristics and their purchasing behavior. The largest group is “switchers,” which includes consumers showing a relatively higher wine diversity than brand diversity. Estimates reveal the “habitual” group, that lives in the southern Italy and consumes wine less frequently than all other groups. The “loyal” group includes the youngest consumers with an above average income, who reside in the northern regions. Finally, the “variety seekers” are older, have the highest incomes, and live in the central regions. This grouping provides insights into the effects of brand and wine typology on consumers’ choices.