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.