Clustering of Customer Attitudes Towards Eco-Innovations - Evidence from Bulgaria

Abstract

The research objective of the paper is twofold: firstly, to investigate how the adoption of innovative practices in the wine industry from the environmental, social, and conventional points of view influences consumers' choices in Bulgaria, and secondly, what is the connection between eco-innovation and consumer attitudes. Based on the results from the previous research study, we calculate index values for different types of innovations and we use the k-means clustering procedure to explore consumers’ attitudes towards eco-innovations in Bulgaria by determining an optimal number of clusters. Bulgarian young consumers (<26 age) are environmentally friendly and orientated towards eco-innovations in the wine industry with special emphasis on recycling (water, energy) and replacing materials. Our findings confirm other recent studies that preferences for eco-innovations in the wine industry are correlated with a willingness to pay more for organic wines. In the present paper, eco-innovation in the wine industry is studied from the demand side, which is traditionally neglected. To our knowledge, clustering analysis for customer attitudes regarding eco-innovations in the wine industry is applied for the first time in Bulgaria. The results of the study can be helpful for wine managers, technical specialists, and wine-producing companies to prioritize their green efforts for the youth generation in Bulgaria.