Domain-specific market segmentation: a wine-related lifestyle (WRL) approach

The purpose of this paper is to illustrate the use of a domain-specific research instrument (the wine-related lifestyle (WRL)) to determine the different lifestyle-related wine market segments in a country and compare the findings cross-culturally.

The research instrument included 48 psychographic activities, interests and opinions (AIO) statements, plus socio-demographic, product consumption and purchasing questions. A final sample of 376 South African wine consumers was utilised, whereon exploratory and confirmatory factor analysis, combined with Hough’s Euclidean test, were applied to determine the existence of clusters (segments), assign descriptions to them, and link these to product consumption data.

Five wine segments recurred when comparing wine market segmentation studies cross-culturally. This means that cross-culturally, similar types of people drink wine with similar AIOs towards wine. In the South African market, four of these segments were identified.

This study achieved a robust lifestyle-based market segmentation algorithm which can be used by researchers in different country environments for wine as a domain-specific product.

The contribution of this research is threefold in that it tested the WRL instrument in a cross-cultural context which is the first time this has been done; in the process it interpreted the wine consumer segments in South Africa for the first time; using a WRL-based (AIO) approach. The study demonstrated that market segmentation based on psychographic (lifestyle) behaviour is strengthened when supported by two additional segmentation methods, namely, socio-demographics and product involvement (purchasing and consumption).