The Chinese wine market: a market segmentation study

Liu, Hong Bo, McCarthy, Breda, Chen, Tingzhen, Guo, Shu, and Song, Xuguang (2014) The Chinese wine market: a market segmentation study. Asia Pacific Journal of Marketing and Logistics, 26 (3). pp. 450-471.

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Purpose: The purpose of this paper is to examine how the Chinese wine market can be meaningfully segmented and to explore marketing implications for the Australian wine sector.

Design/methodology/approach: The research is descriptive in nature, using an online survey to collect quantitative data on wine consumer behaviour. A total of 407 responses were obtained. Data analysis included descriptive analysis (frequency distributions) and cluster analysis.

Findings: The research identifies three clusters of wine consumers: "the extrinsic attribute-seeking customers", "the intrinsic attribute-seeking customers" and "the alcohol level attribute-seeking customers". These groups of consumers were categorised using a behavioural (benefit) segmentation base.

Research limitations/implications: The use of an internet survey and convenience sample limits generalisation of the findings. The adoption of a behavioural basis in conducting the segmentation is a limitation. The use of more complex segmentation bases, such as psychographics, may yield a richer understanding of the Chinese wine consumer in future studies.

Practical implications: The customer profiles provide Australian wine marketers with an insight into Chinese wine consumer behaviour. Brand positioning can be improved by ensuring that the brand emphasises certain product attributes which the segments value when choosing wine.

Originality/value: Little previous research on market segmentation has been conducted in mainland China. For Australian wine marketers, this study provides a baseline study into market segmentation and may assist with targeting and brand positioning decisions.

Item ID: 33510
Item Type: Article (Research - C1)
ISSN: 1758-4248
Keywords: market segmentation; consumer behaviour; chinese wine market; product/brand positioning
Date Deposited: 03 Jun 2014 23:47
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1505 Marketing > 150503 Marketing Management (incl Strategy and Customer Relations) @ 50%
14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation @ 50%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970114 Expanding Knowledge in Economics @ 50%
97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 50%
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