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Wine Consumer Behavior

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Wine Consumer Behavior
WINE CONSUMER BEHAVIOUR: AN IRISH WINE MARKET ANALYSIS. A LITERATURE REVIEW.

Sarah Geraghty Shannon College of Hotel Management sarahgeraghty@shannoncollege.com

ABSTRACT

The Irish wine market, worth €1.65 billion in 2009 (DIGI, 2010), has experienced unprecedented growth in the last fifteen years, growing from an 8% share of the overall alcoholic beverage market in Ireland in 1994 (WDB, 2007) to 22% in 2007 (DIGI, 2009). Relative to the long history of wine making and wine drinking, the marketing of wine is in its infancy (Thomas and Pickering, 2003). With approximately 1,451,000 wine drinkers (WDB, 2004) Ireland is an attractive and profitable target market for international wine brands.

This research aims to analyse the consumer behaviour of Irish wine drinkers, to provide marketers with an insight into the purchase choices of consumers. A profile of consumption patterns will provide marketers with valuable pointers on the type of wine preferred and the wine attributes that appeal to Irish wine drinkers. These pointers can inform brand positioning strategies, in particular labelling, advertising and point of sale decisions.

This paper is a literature review of wine consumer behaviour theory as applied to the Irish market. Assael’s 2004 model of consumer behaviour is adapted to a wine consumption context and three areas of influences on behaviour are reviewed; individual influences, decision making process influences and environmental influences. The review identifies patterns in Irish wine consumer behaviour, such as preference among wine consumers for wine from Australia and Chile. Irish consumers have a preference for red wine, particularly shiraz/syrah and Irish wine consumers identify price, style and region of origin as the most important product attributes when choosing wine. While the literature provides valuable insights into Irish consumer behaviour and preferences, there is little understanding of how the wine consumer behaviour



Bibliography: Assael, H. (2004) Consumer Behaviour. A Strategic Approach. Boston, Houghton Mifflin Company. Balestrini, P. and Gamble, P. (2006) Country-of-origin effects on Chinese wine consumers, British Food Journal, 108 (5), pp. 396-412, Ebsco, [Online]. Available at: http://search.epnet.com.login.asp/ (Accessed: 05 May 2010). DIGI (2009) The Drinks Market Performance in 2008. The Drinks Industry Group of Ireland, Dublin. [Online]. Available at: http://www.drinksindustry.ie/easyedit/files/Document%20Final.rtf (Accessed: 29 March 2010). DIGI (2010) The Drinks Market Performance in 2009. The Drinks Industry Group of Ireland, Dublin. [Online]. Available at: http://www.drinksindustry.ie/easyedit/files/Report%20FINAL.pdf (Accessed: 29 March 2010). Euromonitor (2008) Wine – Ireland. Euromonitor International: Country Sector Briefing. Farren, R. (2003), Vino Veritas, Irish Independent, 16 February. Fielden, C. (1994) Exploring Wines and Spirits. London, Wine and Spirits Education Trust. Geraghty, S and Torres, A (2009) The Irish wine market; a market segmentation study, International Journal of Wine Business Research, 21 (2), pp. 143-154, Ebsco, [Online]. Available at: http://search.epnet.com.login.asp/ (Accessed: 02 January 2010). Gluckman, R. L. (1990) A consumer approach to branded wine, European Journal of Marketing, 24(4), pp. 21-35, Ebsco, [Online]. Available at: http://search.epnet.com/login.asp/ (Accessed: 12 November 2005). Hall, J. (2004) Age related motivational segmentation of wine consumption in hospitality setting, International Journal of Wine Marketing, 16(3), pp. 29-43, ABI/INFORM Global, [Online]. Available at http://proquest.umi.com/ (Accessed: 04 January 2006). Jobber, D. and Fahy, J. (2003) Foundations of Marketing. Berkshire, McGraw Hill. Jenster, P. and Cheng, Y. (2008) Dragon wine: developments in the Chinese wine industry, International Journal of Wine Business Research, 20(3), pp. 244-259, Ebsco, [Online]. Available at: http://search.epnet.com.login.asp/ (Accessed: 05 May 2010). McGarry-Wolf, M., Carpenter, S. and Qenani-Petrela, E. (2005) A comparison of the Y, X, and Boomer generation wine consumers in California, Journal of Food Distribution Research, 36(1) March, pp. 186-191. Mitchell, V. W. and Greatorex, M. (1989) Risk reducing strategies used in the purchase of wine in the UK, European Journal of Marketing, 24(5), pp. 31-47, Ebsco, [Online]. Available at: http://search.epnet.com/login.asp/ (Accessed: 05 January 2006). Peter, J. P. and Olson, J. C. (1996) Consumer Behaviour and Marketing Strategy. Boston, Irwin McGraw-Hill. Quinton, S. and Harridge-March, S. (2003) Strategic interactivem of wine–a case of evolution, Marketing Intelligence and Planning, 21(6), pp. 357-362. [Online], Available at: http://epnet.com (Accessed: 5 May 2004) Reid, M Thomas, A. and Pickering, G (2003) Behavioural Segmentation: a New Zealand wine market application, Journal of Wine Research, 14(2/3), pp. 127-138, Ebsco, [Online]. Available at: http://search.epnet.com.login.asp/ (Accessed: 10 November 2008). Thomas, A. and Pickering, G. (2005) X-it: Gen-X and older wine drinker comparisons in New Zealand, International Journal of Wine Marketing, 72(2), pp. 30-50, ABI/INFORM Global, [Online]. Available at http://proquest.umi.com/ (Accessed: 04 January 2006). WDB (2004) The Wine Market in Ireland 2003 Facts and Figures. The Wine Development Board of Ireland, Dublin. WDB (2008)The Wine Market in Ireland 2007 Facts and Figures. The Wine Development Board of Ireland, Dublin.

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