Abstract
This study explores wine expenditure driven factors for consumers in the United States by employing a four-state consumer behaviors study. A market segmentation method is applied to investigate spending patterns of 1,609 wine consumers in Pennsylvania, Ohio, Kentucky, and Tennessee. Determinants including wine consumption frequency, preference of differently priced wines, wine knowledge, past wine experience, and “local” involvement are investigated and compared for their significance in driving expenditure on wine in general, as well as on locally produced wine specifically. This study also investigated the effect of the determinants on local wine to total wine expenditure ratio. Finally, this study recommends market strategic insights for wine business in general and local wine in specific.
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