Identifying the Characteristics and Behavior of Advocate Segments in New Wine Regions Natalia Kolyesnikova Tim Dodd Dale Duhan Texas Tech University, Lubbock, Texas, USA Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Introduction The current study is an initial attempt to examine i llocall residents’ id t ’ attitudes ttit d ttowards d local wines in an emerging wine region Some wine industries depend largely on local residents’ loyalty y y Example: 95% of wine produced in Texas is sold and cons consumed med within ithin the state Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Purpose of the Study to examine local residents’ attitudes towards local wines in an emerging wine region to segment the developing wine market into distinct market segments based on their attitudes towards regional wines to provide socio-demographic and wine consumption profiles for each segment to examine any potential differences between the segments Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Sample and Procedures Telephone survey of US households Qualified subjects were • 21 years of age and older • consumed wine • had h d consumed d wine i within ithi th the pastt 12 months th 14,821 random telephone calls made 5,650 respondents reached 923 qualifying participants 54% agreed to participate The final sample consisted of 502 competed p interviews Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Measures Assessment of local wines “Texas Texas wines are” of good value good quality well-known appropriately priced better than expected widely available not advertised enough (reverse-coded) 1 (strongly disagree); 5 (strongly agree) Recommendation of local wines “How likely are you to recommend Texas wines to others?” 1 (very unlikely); 5 (very likely) Rating of quality of local wines “Please rate the quality of Texas wines” 1 (poor ( quality); lit ) 5 (excellent ( ll t quality) lit ) Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Results 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 assessment of regional w ines w ould recom mend to others rating of quality l local l enthusiasts h i 4 11 4.11 4 62 4.62 4 43 4.43 local detractors 2.50 1.40 1.88 local advocates 3.26 3.46 2.93 local non-advocates 3.53 2.09 3.67 Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Socio-demographic profile of clusters Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Wine consumption profile of clusters Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Discussion “Enthusiasts” enthusiastic about local wine purchase local wines on a regular basis especially interested in blush/rose and sweeter wines the local wine industry y should capitalize p on this segment g “Detractors” income levels substantially higher consume imported wines probably are image conscious with respect to brands local p products are likely y to be seen as less of a fit with their social image Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Discussion (cont.) “Advocates” larger portion of minority groups consume wine less frequently, frequently but prefer red over white and blush consumption of Texas wine is relatively infrequent, but perception of quality is relatively high the majority of this group (61.3%) purchased Texas wine in the past 12 months th are willing to recommend Texas wines to others “N -Advocates” “Non“Non Ad t ” consume wine least frequently consumption of Texas wine is relatively infrequent, but perception of quality is relatively high the majority of this group (54.4%) did not purchase Texas wine in the past 12 months are not willing to recommend Texas wines to others Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute Limitations & Future Research The study investigated just one new wine region Additional investigations of other regions of the US and other countries would be useful to help determine some generalizable results Some interesting aspects regarding the propensity to recommend and an analysis of the antecedents to recommend could be important outcomes Texas Tech University Rawls College of Business & Texas Wine Marketing Research Institute