Wine market segmentation by age generations in the Western US: expectations after the COVID-19 pandemic

Abstract

Purpose The purpose of this paper is to investigate if differences exist between the four wine-consuming generations in wine purchasing behavior, the desirability of wine attributes when making a purchase decision and information sources used. It examines if generational market segmentation is an actionable and valuable strategy for the wine industry. Generation Z, Millennials, Generation X and Baby-Boomers are the four generations examined. This research also investigates if the generations behaved differently concerning wine consumption during the COVID-19 pandemic. Further, expectations concerning future wine purchasing behavior are examined. Design/methodology/approach An online survey was conducted between April 29, 2020 and May 7, 2020, with a sample size of 944 consumers from Western US States (California, Washington, Idaho, Oregon and Nevada). One-way analysis of variance technique and Chi-square tests were used to examine differences. Findings Segmentation by generation is appropriate when creating products, pricing, determining channels of distribution and creating messaging for a specific wine brand. The COVID-19 pandemic caused channel shifting that is expected to continue after the pandemic. Originality/value This is the second academic paper that examines differences in wine purchasing behavior between generations including Generation Z and the only study that examines the purchasing behavior changes and expectations for the future by generation concerning the COVID-19 pandemic. Research limitations/implications A national survey should be conducted to confirm that the results from the sample that was mostly from California and neighboring states reflect the national wine consumer in the USA. Practical implications The research identifies the products, prices, channels of distribution and messaging that are appropriate to target each generation.

Consumer ethnocentrism under the circumstances of the COVID-19 virus pandemic

“…Regarding the purchase of wine, Miftari, Cerjak, Tomić-Maksan, Imami & Prenaj (2021) concluded that consumers during the pandemic show stronger preferences for the purchase of domestic wine brands. Similar, Wolf, Wolf & Lecat (2022) concluded that significant attribute consumers observe when buying wine during a pandemic is, among others, that the wine is made by the local producer.…”

A dynamic segmentation of U.S. women during the COVID‐19 pandemic

“…For instance, we might expect younger versus older people to face different challenges due to COVID‐19 and thus react differently (Settersten et al, 2020). This type of demographic focus has been particularly common during the current pandemic (e.g., Wolf et al, 2022), when the drive to publish information quickly has led to simpler, perhaps less reliable research output (Azeroual & Schöpfel, 2021). However, a demographic‐only focus also may miss key consumer differences associated with specific patterns of change.…”

Exploring how consumer cooperatives might strategically incorporate social media to distribute wine

“…Direct communication with all stakeholders about wine experiences is a fundamental factor that will contribute to both financial and social performance through cooperation. Wolf et al (2020Wolf et al ( , 2022 dealt at length with the impact of COVID-19's effects on wine consumption and provided a foundation for the role that an SM wine co-op could play in the digital world. Wolf et al (2020Wolf et al ( , 2022 stated that, since wine consumers were restricted to shelter in place (in California), 74% of wine consumers shared their wine consumption activities with friends and families by participating in virtual happy hours.…”

“…Wolf et al (2020Wolf et al ( , 2022 dealt at length with the impact of COVID-19's effects on wine consumption and provided a foundation for the role that an SM wine co-op could play in the digital world. Wolf et al (2020Wolf et al ( , 2022 stated that, since wine consumers were restricted to shelter in place (in California), 74% of wine consumers shared their wine consumption activities with friends and families by participating in virtual happy hours. Our findings suggest that the SM wine co-op offers social belonging and comradery around one's personal interests in wine.…”