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Usage rate segmentation: enriching the US wine market profile

Authors Kelley K, Hyde J, Bruwer J

Received 21 January 2015

Accepted for publication 9 March 2015

Published 8 May 2015 Volume 2015:7 Pages 49—61


Checked for plagiarism Yes

Review by Single-blind

Peer reviewer comments 2

Editor who approved publication: Dr Roger Pinder

Kathleen Kelley,1 Jeffrey Hyde,2 Johan Bruwer3

1Department of Plant Science, 2Department of Agricultural Economics, Sociology, and Education, The Pennsylvania State University, University Park, PA, USA; 3School of Marketing, University of South Australia, Adelaide, SA, Australia

Abstract: The purpose of this research is to enrich our knowledge of the US wine market and provide insights into how usage rate segmentation can be enhanced by select innovative perspectives of current offerings. Data were collected through a 15-minute online survey of 910 US wine drinkers randomly selected from a panel of consumers. It was found that the “super core” segment not only drank wine more frequently, but also were more likely to drink other types of alcohol presented (beer, distilled spirits, and ready-to-drink cocktails), and at a greater frequency, “at least once a week” and “about once a week”, than “marginal” drinkers. Differences between usage rate segments existed between sex and age generations. Female millennial “super core” consumers would increase wine consumption if the number of calories were reduced to fewer than 80 per 5 oz serving. Practical implications for a winery or wine retailer might include the potential to add these beverages to their product offering or bundling these beverages to create packages (allowing for mass customization, which is used often in retail) and appropriately marketing these offerings to their customers. Changes that may invoke a positive response are wine made from “sustainably farmed” or “naturally farmed” grapes, and certified carbon-free wine. From an originality viewpoint, this study is the first to investigate how usage rate segmentation can be enriched by means of variable cross-extension and examination.

Keywords: consumer behavior, market segmentation, usage rate, consumption frequency, USA

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