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This exploratory study identified specific preferences and characteristics of Korean wine
consumers. Relevant literature was reviewed in an attempt to find the most suitable market
strategy in the Korean wine market. This study employed samples from members of a Ko-
rean wine association (KISA) to identify Korean wine consumers’characteristics and pref-
erences. The study found Korean wine consumers had interesting preferences and that
there were some significant differences between these preferences and demographic char-
acteristics among the Korean respondents. The paper offers wine marketers suggestions
about what they need to understand in order to attract Korean wine consumers and what
may be appropriate and effective wine-marketing strategies and practices in Korea.
Authors’ Note: The authors wish to thank three anonymous reviewers for their valuable comments
and suggestions for this study.
Journal of Hospitality & Tourism Research, Vol. 29, No. 1, February 2005, 20-41
DOI: 10.1177/1096348004268195
© 2005 International Council on Hotel, Restaurant and Institutional Education
20
Lee et al. / KOREAN WINE MARKET 21
Figure 1
U.S. Wine Exports to South Korea (value $000)
6,000
5,620
5,000
4,000
Amount
3,682
3,000 2,782
2,000
1,000 1,191
0
1998 1999 2000 2001
Year
famous Bordeaux wine lost 15% of its market share in the United Kingdom. How-
ever, the global wine export share from New World countries, such as the United
States and Australia, has increased. For example, wine exports from Australia
increased 20% in 2002 compared to 6% a decade prior (Angulo, Gil, Gracia, &
Sanchez, 2000; Carreyrou, 2003; Orth & Krska, 2002).
At the same time, world wine production exceeds world wine consumption
(Dodd, 1997). It is estimated that global wine production surpasses consumption
by about 20% (Oldroyd, 2001). The total world production was 27,400.74 million
liters, with an increase of 17.1% from 1994 to 2000. This result is attributed to
increased production of 63%, 52.8%, and 51.7% respectively, in North America,
Asia, and Oceania (Vinexpo avec le Concours de Vertumne International &
Associes, 2002b).
Around the world, vineyards increased by 7.2% from 1994 to 2000, an expan-
sion of 6,003.67 thousand hectares. As early as 1988, there was a total of 3,320
million liters of surplus wine in the world; this surplus soared to about 6,401 mil-
lion liters between 1999 and 2000 because of a major decrease in wine consump-
tion in Western Europe (Beckett, 2001; Spawton, 1990). This growing gap
between production and consumption has challenged the global wine industry for
more than two decades.
It appears that the world wine industry should explore opportunities for expan-
sion into new wine markets, such as Korea. Koreans have increased their wine
consumption rapidly, with an annual growth rate of 20% from 1996, except dur-
ing the 1997-1998 Asian economic crisis. It is estimated that Koreans will con-
sume 20,000,000 liters of wine by 2006, which is a 36% increase from the
14,632,000 liters of wine consumed in 2000 (Vinexpo avec le Concours de
Vertumne International & Associes, 2002a).
Figure 1 presents U.S. wine exports to South Korea from 1998 to 2001. Korean
wine imports from the United States have increased sharply, and the Korean mar-
ket will be a key export market for U.S. wineries within 5 years (Stephens, 2003).
Because of increased disposable income, health concerns, and growing wine
demands from Korean working women, wine is gaining popularity in Korea
22 JOURNAL OF HOSPITALITY & TOURISM RESEARCH
(Bang, 2000; Ryu, 1994; Seo, 2002; Stephens, 2003). Wine has become an attrac-
tive substitute for higher alcohol-content beverages.
For global wine marketers, the export of wine to Korea can be appealing, as the
Korean government has begun to remove tariffs on imported wine. For example,
according to the recent Free Trade Agreement (FTA) between Korea and Chile,
the Korean government will remove the 15% tariff on Chilean wine in 5 years
(Choi & Huh, 2002). The Korean wine market has huge growth potential for the
global wine industry (Bang & Cho, 2001; Kim, 2002; Stephens, 2003).
According to Spawton (1991a), the wine industry has focused more on sales
than on marketing; however, wine industry managers should emphasize market-
ing because of the global changes in consumers’ behavior and the competitive
environment (Sharp, 1991; Spawton, 1990). However, most wine-marketing
research is limited to the European market because of the market’s importance for
both wine production and consumption. For instance, the European wine coun-
tries produced almost 74% of the world’s wine, and the market accounted for
approximately 72% of the world’s wine consumption in 1998 (Spahni, 2000).
Considerable marketing research has focused on Europe and North America.
For instance, studies include British wine consumers (Mitchell & Greatorex,
1989); the Spanish wine market and consumers (Angulo et al., 2000; Gil &
Sanchez, 1997); port wine–marketing strategies (Lages & Shaw, 1998); Greek
wine consumers (Kalogianni, Klavdianou, Alexaki, & Tsakiridou, 1999); the
Hungarian wine market (Williams & Pearson, 1992); European consumers’ wine
consumption patterns (Smith & Solgaard, 2000); Irish consumers’ wine prefer-
ences (Keown & Casey, 1995); cross-cultural European wine consumers’motiva-
tions (Hall, Shaw, & Doole, 1997); information sources of American wine drink-
ers (Dodd, Pinkleton, & Gustafson, 1996); and consumers’ characteristics of
wine clubs in Canada (Schell, Amero, Cameron, & Scott, 1985).
Because the global wine industry has become more and more competitive
(Stephens, 2003; Walker, 2002), wine marketers should begin to explore emerg-
ing wine markets, such as South Korea. Very little wine-marketing research has
been conducted in Korea, where there is a large potential for increased wine pur-
chasing. It is critical for the wine marketers to better understand Korean wine con-
sumers’purchasing behaviors, needs, and preferences in order to develop market-
ing strategies for export to Korea (Beverland, 2002; Dodd, 1997; Sharp, 1991).
The objective of this article is to answer the following questions:
• What are Korean wine consumers’ characteristics and specific preferences when se-
lecting a wine?
• Are there any significant relationships between key demographic variables (age,
gender, income, and the years of wine drinking experience) and their wine selecting
preferences?
• What could be effective marketing strategies in the Korean wine market?
• How should wine marketers implement marketing strategies in Korea?
Lee et al. / KOREAN WINE MARKET 23
LITERATURE REVIEW
Dodd (1997) and Goldsmith (1998) examined the characteristics of wine inno-
vators. As opinion leaders, wine innovators are likely to buy new wines, purchase
wine more frequently than noninnovators, and spread favorable or unfavorable
word-of–mouth to other consumers about wines that they experienced (Dodd,
1997; Goldsmith, 1998).
Most wine innovators acquire wine information from wine magazines, journal
articles, and wine tastings, in comparison to wine noninnovators, who obtain
wine information through word-of-mouth from friends or relatives (Dodd, 1997).
It is important for wine marketers to develop marketing programs, such as a
frequent-buyer reward program, to attract and retain the wine innovators because
they are frequent wine buyers as well as opinion leaders who influence other con-
sumers’ wine purchases (Goldsmith, 1998).
Spawton (1991b) claimed that wine consumers felt risk psychologically, func-
tionally, and economically when they purchased wine. Psychological risk was
related to the consumer’s self-esteem. For example, consumers might worry
about selecting the wrong wine. The functional risk occurred when consumers
could not decide which wine they should buy for their specific meals or occasions.
Insufficient wine knowledge could cause the functional risk. The economic risk
was associated with the value of wine. Consumers often were not confident of the
true value of wine that they purchased. In particular, when the consumers bought
an unfamiliar bottle of wine, their sense of an economic risk tended to increase.
Mitchell and Greatorex (1989) indicated that reducing risk was a key factor in
purchasing wine and illustrated methods for reducing those risks. They suggested
taking the opportunity to taste wine and following the recommendation of friends
and relatives as effective ways to reduce the risks of purchase. In comparison,
using a store image and buying the most or least expensive wine were considered
the least popular ways for consumers to avoid the risk of purchasing wines. Nov-
ice wine consumers were more likely to buy well-known brands based on family
members’ or friends’ opinions, thereby reducing the risk of wine purchasing
(Spawton, 1991b).
Thompson and Vourvachis (1995) argued that consumers tended to depend on
friends’ or family members’ opinions in their wine selections because wine had
many attributes, such as flavor or tastes, making identification of those attributes
difficult. Therefore, wine marketers can be more effective if they offer consumers
enough opportunities to taste and test wine flavors before purchase (Thompson &
Vourvachis, 1995).
Orth and Krska (2002) claimed that international or regional exhibition awards
for wine products influenced consumer wine purchases significantly. They
pointed out that wine consumers preferred to buy wine with exhibition awards
rather than without because the consumers perceived that exhibition awards were
a quality assurance indicator.
METHOD
Instrument
A quantitative method (self-administered questionnaire) was used to collect
data regarding Korean wine drinkers’ characteristics and preferences. The ques-
tionnaire was composed of three major parts, with 35 variables measuring Korean
wine consumers’ preferences and characteristics.
The questionnaire was based on relevant literature reviews (Gil & Sanchez,
1997; Kalogianni et al., 1999; Keown & Casey, 1995). The first part of the ques-
tionnaire dealt with respondents’ preferences and characteristics when drinking
or selecting wine. The second part included wine attributes, the purpose of wine
drinking, and factors influencing wine drinking among Koreans. The last section
consisted of the respondents’ demographic characteristics, such as age, gender,
education, occupation, and income. A 7-point Likert-type scale was used to mea-
sure Korean wine drinkers’ preferences, characteristics, purpose in drinking
wine, and factors affecting wine consumption.
The questionnaire was originally developed in English because most of the
pertinent literature reviews referred to in developing the questionnaire were writ-
ten in English. A Korean Ph.D. student who is fluent in both English and Korean
and has an extensive knowledge of wine translated the original English question-
naire into Korean. A bilingual Korean professor back-translated into English to
test the readability of the translated instrument. Before data collection procedures
began, the questionnaire was pilot-tested on 10 Koreans to ensure the reliability
and clarity of the questionnaire.
Participants
The survey was conducted among the members of a wine association (KISA)
in Seoul during the months of September and October 2002. KISA’s members are
interested in wine and the sharing of wine information. KISA is one of the largest
wine associations in Korea and offers regular wine seminars and wine-tasting
events. Membership is very diversified, ranging from hotel managers to house-
wives. The survey was conducted during KISA’s regular meetings in September
and October, 2002. The survey questionnaires were distributed to 280 members
who attended the meetings. Some 218 filled out the questionnaires, generating a
response rate of 78%. This is a convenience sample of active Korean wine con-
sumers. The data were analyzed by using SPSS 10.0 software.
Data Analysis
Frequencies and percentages of age, gender, income, education level, and
occupation of respondents are given in Table 1. In addition, t tests and one-way
ANOVA tests were employed to analyze Korean wine drinkers’preferences, char-
acteristics, and other factors influencing wine drinking by age, gender, and years
of wine-drinking experience. The researchers also utilized multiple regression
tests to examine whether any relationships existed between frequency of wine
drinking, income, gender, and age.
Lee et al. / KOREAN WINE MARKET 27
Table 1
Descriptive Characteristics of Participants (N = 218)
Characteristic n Percentage
Age (years)
20-29 81 37.2
30-39 66 30.3
40-49 48 22.0
50 or older than 50 23 10.5
Total 218 100.0
Gender
Male 108 50.0
Female 108 50.0
Total 216 100.0
Income
Below $14,999 74 34.7
$15,000-$24,999 58 27.2
$25,000-$39,999 58 27.2
$40,000 or older 23 10.8
Total 213 100.0
Educational level
High school 17 7.8
Collegea 66 30.3
University/graduate 135 61.9
Total 218 100.0
Occupation
Self-employed 15 7.7
Government worker 5 2.6
White-collar worker 44 22.5
Service sector 127 64.8
Not in workforce 5 2.6
Total 196 100.0
Years of wine drinking
More than 15 years 33 15.2
10-14 29 13.3
5-9 50 22.9
1-4 74 33.9
Less than 1 year 32 14.7
Total 218 100.0
RESULTS
Participants
Table 1 shows the demographic profile of the respondents. The number of
male respondents (50.0%) was the same as that of female respondents (50.0%).
The majority of respondents was between 20 and 49 years old (89.5%).
Most of the respondents had university or graduate degrees (61.9%). A total of
30% of the respondents had a 2-year college education; 34.7% of the respondents
had annual household incomes below US$14,999; and 27.2% and 10.8% had
28 JOURNAL OF HOSPITALITY & TOURISM RESEARCH
Table 2
Descriptive Statistics for Wine Specific Attributes, Factors Influencing Wine
Purchasing, and Purpose of Wine Drinking
Wine attributes
Flavor 5.92 1.80
Taste 5.75 1.51
Price 5.02 1.55
Appelation of origin 4.99 1.69
Wine brand 4.97 1.52
Wine reputation 4.68 1.66
Regional label 4.27 1.62
Grape vintage 4.01 1.80
Factors influencing wine purchase
Friends’ or relatives’ recommendation 4.54 1.83
Wine publications 4.35 1.68
Wine promotion 3.79 1.75
Wine advertising 3.78 1.64
Wine tasting 3.71 1.79
Wine seminar 3.28 1.80
Purpose of wine drinking
Harmony with food 4.97 1.58
Status and ambience 4.61 1.67
Health 4.18 1.78
Note: 7-point Likert-type scales ranging from 1 to 7, where 1 = not at all important and 7 =
very important.
Table 3
Descriptive Statistics for Different Wine Varieties and Origin of Wine
Wine Variety
Red 5.12 1.60
White 4.59 1.52
Sparkling 3.19 1.71
Rose 3.10 1.56
Origin of wine
France 5.24 1.61
U.S. 4.34 1.87
Italy 4.16 1.82
Australia 3.62 1.72
Chile 3.56 1.73
Germany 3.54 1.46
Spain 3.09 1.56
Korea 3.08 1.54
South Africa 2.67 1.51
Note: 7-point Likert scales ranging from 1 to 7, where 1 = least like and 7 = the most like.
Table 4
Price and Wine Bottle Size That Wine Consumers Prefer to Purchase
Percentage
Price
Under $7.99 1.8
$8.00-$24.99 24.8
$25.00-$41.99 34.4
$42.00-$58.99 29.4
$59.00-$75.99 8.7
Over $76.00 0.9
Size of wine (ml)
750 75.7
375 21.4
200 2.9
for wine origin. The country of origin most preferred was France (5.24), followed
by the United States (4.34), and then Italy (4.16). South African wine had the low-
est mean score (2.67).
Table 5
Significant Differences in Wine Selection by Gender
Mean Score
Variable Male Female t Value p Value
Preferences
Red wine 5.49 4.79 3.110 .002
Italian wine 4.42 3.90 2.150 .033
South African wine 2.91 2.42 2.429 .016
Importance
Grape vintage 4.27 3.75 2.135 .034
Regional label 4.49 4.06 1.986 .048
Health 4.48 3.89 2.484 .014
Preference
Red wine 4.64 5.44 5.50 5.09 5.12 4.39 .005 .225
Sparking wine 3.38 3.56 2.81 2.26 3.19 4.63 .004 .001
Importance
Regional label 4.02 4.33 4.79 3.87 4.27 2.88 .037 .995
Health 3.65 4.39 4.54 4.70 4.18 4.22 .006 .011
Table 7
Significant Differences in Wine Selection by Age:
Multiple Comparison Post Hoc Test
20 to 29 30 to 39 40 to 49
Variable Years Old Years Old Years Old 50 or Older
Preference
Red wine 20-29 < 30-39a 20-29 < 40-49
a
a. Tukey HSD approach to compare all pairs of age groups (significance level at .05).
The Korean wine market has huge potential for growth and development. Iden-
tifying consumer preferences and characteristics is critical to expanding and
34
Table 8
Significant Differences in Wine Selection by Experience
Preference
Red wine 5.21 6.14 5.18 4.68 5.03 5.12 4.74 .001
Sparking wine 2.48 3.03 3.40 3.12 3.91 3.19 3.20 .014
Importance
Price 5.24 5.90 4.78 4.93 4.59 5.02 3.65 .007
Grape vintage 4.24 4.86 3.64 3.76 4.16 4.01 2.83 .026
Health 4.70 4.86 4.14 3.77 4.06 4.18 2.93 .022
Harmony with meal 5.18 5.59 5.20 4.49 4.94 4.97 3.46 .009
Status and surroundings 4.79 4.34 5.12 4.12 5.00 4.61 3.70 .006
a. One-way ANOVA test was used to see whether the years of wine drinking experience was significantly related to variables (significance level at .05).
Table 9
Significant Differences in Wine Selection by Experience:
Multiple Comparison Post Hoc Test
More Than 10 to 14 5 to 9 1 to 4
Variable 15 Years Years Years Years Less Than 1 Year
Preference
Red wine 1-4 < 10-14 yearsa,
less than 1 < 10-14 yearsa
Sparkling wine more than 15 years <
less than 1 yeara
Importance
Price 5-9 < 10-14 yearsa, 1-4 < 10-14 yearsa,
less than 1 < 10-14 yearsa
a a
Grape vintage 5-9 < 10-14 years , 1-4 < 10-14 years ,
less than 1 < 10-14 yearsa
a
Health 1-4 < 10-14 years
a
Harmony with meal 1-4 < 10-14 years
a
Status and surroundings 1-4 < 5-9 years
a. Tukey HSD test was used to compare all pairs of the years of wine drinking experience group (significance level at .05).
35
36 JOURNAL OF HOSPITALITY & TOURISM RESEARCH
Figure 2
Significant Difference of Wine Preference and
Purpose of Wine Drinking by Age Group
5
4.5
4
7-point Likert Scale
3.5
3
2.5 Sparkling Wine
2 Health
1.5
1
0.5
0
20-29 30-39 40-49 50 or over
50
Age
developing that market. The purpose of this study was to identify Korean wine
consumers’ preferences and characteristics and provide suggestions for promot-
ing wine in the Korean market.
According to the results of the study, the majority of female respondents (65%)
had started drinking wine within the previous 4 years. Recently, wine has become
popular among Korean female drinkers because it is easy to drink and has lighter
alcohol content in comparison with strong, traditional Korean liquors, such as
Sochu, which is brewed from rice (Seo, 2002). It is expected that the female wine
market will increase significantly in the total Korean wine market (Bang & Cho,
2001). Therefore, developing female wine drinkers is an important issue for
expanding that market.
The results of the study indicated that young respondents (aged 19-29) liked
sparkling wine significantly more than did older age groups. Wine marketers may
introduce a broad range of sparkling wine in the Korean market for the young
wine drinkers.
This study revealed that the flavor and taste of wine were the most important
factors (ranked first and second) in the respondents’ wine selections. Wine mar-
keters should facilitate flavor and taste of wine in their marketing effort so that the
consumers better understand these attributes.
Harmony with meals was ranked first as the purpose for drinking wine. Asia
will be the fastest growing region in wine consumption in the next 5 years
(Vinexpo avec le Concours de Vertumne International & Associes, 2002b). Ko
et al. (2002) argued that it is critical for wine companies to identify and develop
wine products that can be easily matched with Asian food in order to boost wine
consumption and achieve a long-term success in the highly promising Asian mar-
ket. At the same time, it might be necessary for a wine company to educate Korean
wine drinkers that certain wine can be harmonious with traditional Korean food.
For example, full-bodied red wines, such as Carbernet Sauvignon and Merlot, go
well with traditional Korean barbecue, bulgogi (Stephens, 2003). However, many
Korean consumers perceived that Western wine always goes with Western food
Lee et al. / KOREAN WINE MARKET 37
(Stephens, 2003). Therefore, it is suggested that the wine marketers need to pro-
mote the fact that Korean wine consumers do not have to restrict themselves to
Western food whenever they drink wine; they should try Korean food as well.
The results of the study showed that recommendations from relatives or
friends played an important role in Korean consumers’ wine-purchasing deci-
sions. Keown and Casey (1995) pointed out that many consumers hesitated to buy
wine because of the risk and uncertainty. According to the results of the study,
Korean consumers tended to reduce the risk in wine purchasing by listening to
friends’ or relatives’ recommendations.
Recently, several wine clubs were established in Korea so that wine consumers
could share wine information (Lee, 2002; Stephens, 2003). Wine marketers
should build a good relationship with the wine club members because the mem-
bers, as opinion leaders, may play an important role in spreading wine informa-
tion to their friends or relatives.
In addition, professional staff can be helpful in providing information and
advice about wine. Marketers can invite sales personnel from key wine stores, and
food and beverage managers from major hotels and restaurants in Korea, to their
wineries and provide tours and tastings. In this way, the personnel can become
familiar with wine products and eventually provide better wine information or
suggestions to customers. Also, the knowledge gained helps wine consumers
reduce any uncertainty or risk regarding their wine purchases (Keown & Casey,
1995). Roberto (2002) reported that Robert Mondavi has provided a series of
training seminars and educational events to fine restaurants and hotels. The pur-
pose of these events has been to help restaurant and hotel operators better under-
stand Robert Mondavi wines as well as successful wine service. Other wine dis-
tributors and marketers should learn from Robert Mondavi and provide seminars
and trainings for hotel and restaurant employees.
The results of the study showed that the level of preference and importance in
certain research variables differed significantly by age. For example, middle-aged
and older participants (40 years or older) preferred red wine, compared to youn-
ger ones, aged 20 to 29. The middle-aged and older respondents’ preference for
red wine was closely related to their health concerns. According to the results of
the study, there was also a strong linear relationship between consumers’ health
concerns and age. As consumers’ age increases, health concerns become an
important factor in their wine drinking.
The fact that moderate red-wine drinking could reduce heart disease affected
older consumers’red-wine preferences. Wine marketers should take advantage of
the older Korean consumers’ health concerns in promoting red wine in their mar-
keting. To attract the older wine drinkers, marketers’ advertisements and publica-
tions can focus on explaining the health benefits of drinking red wine.
The results of the study illustrated that the levels of preferences and impor-
tance in many variables differed significantly, according to how many years the
respondents had been drinking wine. Price and grape vintage were more impor-
tant attributes to consumers who had been drinking more than 10 years than con-
sumers who had been drinking wine less than 10 years.
38 JOURNAL OF HOSPITALITY & TOURISM RESEARCH
In addition, health concerns and harmony with meals were more important
issues to consumers who had drunk wine 10 to 14 years than to consumers who
had started to drink wine only within the past 4 years. However, the considerations
of surroundings and status were more important aspects in influencing consumers
whose wine-drinking periods were less than 4 years than to consumers who had
been drinking wine for 5 to 9 years. These results imply that the consumers whose
wine-drinking period is less than 4 years may not have enough wine knowledge to
appreciate the wine attributes, such as grape vintage and health benefits of wine
drinking.
Also, these new wine drinkers drink passively in keeping with external factors,
such as status and surroundings. Therefore, it is recommended that wine market-
ers provide information related to wine attributes and health benefits to this young
wine market segment in Korea. For example, a wine retailer in Korea developed
traditional Korean paintings that also include wine information in Korean and
attached them to the labels of their imported wine bottles so that Korean custom-
ers could become familiar with their wine (Seung, 2002). In addition, it might be
helpful for wine marketers to design and offer wine cultural events so that wine-
drinking beginners can better understand wine (Roberto, 2002).
The results of the study indicated that two demographic characteristics,
income and age, are closely related to the frequency of wine drinking. High-
income consumers drink wine more frequently; older consumers drink wine more
frequently compared to relatively low-income consumers and younger consum-
ers. Wine marketers may group Korean wine-drinker segments according to their
income and age. It will help the wine operators to develop their marketing strategy
by the characteristics of each wine-consumer segment to accommodate the differ-
ent needs and preferences of each.
The traditional wine market has been saturated, and the global wine industry
has become very competitive. Thus, wine marketers need to find new markets.
The Korean wine market has great potential. The worldwide wine industry has a
real opportunity in the Korean wine market if it understands the characteristics
and preferences of the Korean wine consumers, and if it customizes products, ser-
vice offerings, and marketing. Worldwide wine-marketing managers need to real-
ize that they can achieve long-term success in foreign markets if they understand
the consumer preferences and characteristics of each market.
researchers believe that the findings are valid, albeit with the limitations of the
survey method because the current population of wine consumers in Korea has
been driven by the more wealthy and educated consumer group. This finding is
consistent with the characteristics of samples in the study in terms of age, gender,
occupation, education, and income (Lankov, 2003).
In addition, the study focused on identifying Korean wine drinkers’ character-
istics and preferences. It did not discuss other key issues, such as the choice of a
wine firm’s entry mode, a factor crucial for a foreign wine firm’s success in the
Korean markets. A firm’s profit in the foreign markets is highly correlated to the
appropriate selection of its entry mode (Solana-Rosillo, 1997). Most Asian wine
markets are fundamentally different from Western markets in terms of their mar-
keting practices, distribution channels, and pricing strategies (Beverland, 2002).
Future research may investigate foreign wine firms’ entry mode into Asian wine
markets as a factor for developing these markets.
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