Professional Documents
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Wine Consumption in New and Expert Consumers
Wine Consumption in New and Expert Consumers
1, 2014
1 Introduction
to draw large immigrants from Italy, a clearly wine consumer country, in the period of
1815–1970; this brought the introduction of Italian consumers (Devoto, 2006).
Country 2012
Argentina 21.1
Australia 20.5
Chile 10.1
France 26.9
Italy 26.8
Mexico 0.4
New Zealand 18.7
Spain 10.6
USA 7.7
Source: Euromonitor International (2012)
Today, the countries’ customs have been generalised through the great global society
(Pichler, 2011). In Mexico, the wine consumption growth rate has ascended, driven by a
greater layout and an international variety of products ever since the country’s
trade opening in the 1990s as well as a domestic production impulse this has motivated
a lot of consumers to try endemic products. The study by the Californian bank Rabobank,
which specialised in agricultural financing, pointed out that, while China and
South Korea are the most attractive short-term wine markets, Mexico, Brazil, Poland
and Nigeria are the four ‘hidden gems’ with the potential to become main growth markets
(Noticias: Internacional. Vinetur, 2012).
Despite the importance and popularity of the wine in Mexico, there are very few
academic papers that have been developed about the consumers’ behaviour regarding the
consumption of wine in this country. This research paper seeks to contribute to the
knowledge and understanding of Mexican behaviour regarding the purchase and
consumption of wine. It also explores the differences in perceptions and motivations
between two groups of Mexican consumers: connoisseurs and aspirational/new wine
consumers. This paper is organised as follows: Section 2 presents previous research on
the consumption of wine; Section 3 describes the methodology and design of the study;
Section 4 presents the empirical results; Section 5 concludes and presents practical
implications and Section 6 identifies limitations and options for future research.
2 Literature review
There is a history of research in the field of wine; this research has been conducted on
different topics and for different purposes. Medic Research about wine is one of the most
popular topics in academic research, from its disinfectant effects (to cure skin diseases)
(Fehér et al., 2007) to studies such as ‘The French Paradox’ (Ellison, 2011), which
associates with the health benefits of moderate consumption of wine by lowering rates of
heart disease. In the field of Behavioural Economics, many papers have been developed
Wine consumption in new and expert consumers: the case of Mexico 53
related to hedonic price items and various intrinsic and extrinsic attributes that the
consumer assigns to the wines from the Old and New Worlds, concluding that there is
consumer marginal willingness to pay and estimate an implicit price for these attributes
(Orrego et al., 2012). Studies conducted in France show that extrinsic aspects are strongly
related to concupiscent consumption rather than quality and pleasure themselves,
suggesting that extrinsically motivated consumers buy luxury goods mainly, but not in
all, motivated by concupiscent behaviour. Even in studies with a marketing approach,
these behaviours are found in cultures such as English (Ritchie, 2007) and Chinese in
search of a ‘mianzi’ (Fang and Murphy, 2007) or driven by worry about how others
perceive them rather than for the pleasure of the act (Truong, 2010); the findings of these
papers agree that social interaction with wine varies significantly depending on the
occasion and the environment.
Conceptual and theoretical studies in Spain explain the technological revolution and
the internationalisation that the wine industry has experienced over the decades, which
has enabled the country to maintain high competitiveness, a situation that, without these
sustained changes, would have prevented it (Martínez and Medina-Albaladejo, 2010).
On the side of marketing strategies, research papers have been developed. Those with
conceptual and theoretical approaches suggest there conceptualisation of the categories of
wines to add one more: the ‘Third World’ or ‘Wines of the World’, owing to the outdated
current classification (‘Old World’ and ‘New World’) in regard to geographic locations,
production processes and marketing as well as consumer habits and the rapid adoption of
these habits by the middle class in new markets such as China and India (Banks and
Overton, 2009). Also, studies of consumer behaviour have been conducted in British
(Ritchie, 2007) and Chinese markets (Fang and Murphy, 2007), which has facilitated a
greater knowledge and understanding of the different behaviours, perceptions and
motivations of consumers in some regions of these countries.
In regard to market segmentation, studies have sought to group consumers
in numerous markets, assigning different groups based on behaviour (Spawton, 1991), to
demographics or psychographics (Barber et al., 2008), or more specifically by region,
such as German-speaking Switzerland (Brunner and Siegrist, 2011) or Texas in the USA
(Kolyeskikova and Duhan, 2008). There are also studies about the brand image of wine
regions in California whose findings suggest that the appellation of origin is the most
important information for predicting the quality of a wine that provides greater consumer
confidence (Johnson and Bruwer, 2007).
Seminal studies of perception and consumption of wine have also been conducted,
highlighting especially those that focus on the USA, which has seen a decrease in
consumption rates owing to the 2008 economic crisis severely affecting the premium
wines but opened a new business opportunity for economic wines (Ranneklev, 2009).
Such studies also examine Australia, where consumption has picked up in recent years,
thanks to innovation and a policy framework to promote the production and consumption
of wine (Aylward and Turpin, 2003). In the case of Latin America, literature exists
mostly focused on the southern cone countries like Argentina and Chile, which have
experienced a growing acceptance in international markets thanks to high-quality
products and lower prices compared with their European counterparts (Stein, 2010).
Similar to Mexico, China, owing to its size and its domestic market, is positioned
as a new player in the wine market (Thorpe, 2009). The acceptance of wine in Mexico,
as in the Chinese market, is in a very early stage and has a prominent future.
54 R. Castaño et al.
Mexico benefited from trade liberalisation in the 1980s and 1990s with the entry into the
General Agreement on Trade and Tariffs (GATTs) in 1986, followed by the tariff
reduction of final goods that accompanied the signing of the North American Free Trade
Agreement (NAFTA) in 1994, which allowed access to new products (Serra Puche,
2010). China experienced a similar occurrence with its membership in the World Trade
Organization (WTO) held in December 2001; thanks to this openness, demand in China
and Mexico has expanded, and preference for wine has included consumers outside the
Old World that were not reached before (Fang and Murphy, 2007).
Previous research findings suggest that wine has reached virtually every corner
of the earth, with good acceptance from the markets, from those already in the Old and
New Worlds to the relatively unrelated for which globalisation itself has enabled rapid
adoption. This research contributes to the extension of knowledge about this issue in a
country that had remained on the sidelines in the production, sale and consumption of this
product.
3 Methodology
Because of the lack of previous research regarding the motivators and inhibitors of the
consumption of wine in Mexico, a qualitative study using in-depth interviews was
conducted. A qualitative study will help to gain an understanding that often cannot be
obtained by other methodologies (Malhotra, 2010). The study was conducted among new
vs. experienced wine consumers in Mexico. The interviewees included questions
regarding knowledge and consumption of alcoholic beverages, wine purchase and wine
consumption habits (Oliver and Mano, 1993). The sampling process was non-
probabilistic through a convenience method; respondents were in proximity to the social
circles of the researchers to accelerate the process of sharing information in an intimate,
in-depth process (Frankel and Devers, 2000). All interviews were conducted by the two
researchers. Respondents were divided according to their knowledge and consumption of
wine using as segmentation basis as defined by D. McKinna and cited by Tony Spawton
(Spawton, 1991) in which the Australian wine consumers were grouped by
new/aspirational and connoisseurs drinkers. For the purposes of the study in Mexico,
respondents were categorised based on this pre-selection coupled with their degree of
involvement towards wine consumption, positioning the consumer with high involvement
in the segment of connoisseurs and low involvement consumers among the
new/aspirational wine consumers. Connoisseurs are the wine knowledgeable segment,
the primary purchasers of fine wines. These people consume wine on a regular (daily)
basis. They have a broad spectrum of tastes and like to experiment. These consumers see
wine education as a hobby, read wine journals avidly and are not price-sensitive
(Spawton, 1991). The new/aspirational wine consumers have between one and four years
drinking wine, with an approximate frequency of once per month (mainly at social
events). Members of this segment are concerned with the social aspects of wine drinking.
They are attracted to wine based on the behaviour of their parents or peer group
(Spawton, 1991).
Of the aforementioned interviews, 14 interviews were applied to the group of
aspirational/new wine drinkers and 11 interviews in the segment of connoisseurs. In total,
25 interviews were conducted over a period of 20 days between the months of August
Wine consumption in new and expert consumers: the case of Mexico 55
and September 2013. An equitable sample was sought; however, we found a greater
response in the audience from men, with 11 women and 14 men. Respondents came from
the major urban areas of the country, and most were employed, with undergraduate
degrees, single, and mostly in a range of 25–35 years. The interviews were transcribed
for later analysis (see Table 2 for a description of the respondents’ profile). To aid in the
development of the interview guide, a preliminary interview was conducted with a wine
expert, the sales manager of a specialised wine store in northern Mexico.
Current place
Name Age (years) Marital status Occupancy of residence Gender
Alfonso 25 Single Lawyer Monterrey M
Carlos R. 26 Married Student Monterrey M
Cristina 26 Single Event Coordinator Monterrey F
María 27 Single Management Director Monterrey F
Jesús 27 Single IT Engineer Monterrey M
Roberto 27 Single Business Owner Monterrey M
Cindy 27 Single Student Monterrey F
Estrella 27 Single Business Owner Querétaro F
Enrique 27 Single Engineer Monterrey M
Luis 30 Single Professional Chef México DF M
Carlos S. 30 Single Employee México DF M
Beatriz 30 Married Business Owner Monterrey F
Gloria 33 Single Accountant Monterrey F
Ignacio 34 Single Chef Durango M
Xicoténcatl 34 Married Engineer Monterrey M
Norma 34 Married Housewife Monterrey F
Francisco 35 Married Management Executive Monterrey M
Adriana 35 Married Accountant Monterrey F
Blanca 38 Married Housewife Monterrey F
Aurelio 39 Married Engineer Monterrey M
Claudia 39 Single Graphic Designer Monterrey F
José 40 Married Sales Manager Monterrey M
Eduardo 42 Married IT Engineer Monterrey M
Mónica 42 Single Engineer Guadalajara F
Jorge 65 Single Engineer Durango M
4 Findings
By studying the wine experience in both consumer groups, we found different rituals and
sequences of activities, in the purchase and consumption of wine.
56 R. Castaño et al.
4.4 Inhibitors
Throughout the study, marked differences were found among the way people experience
the consumption of wine and the motivations for each group; nevertheless, it was possible
to perceive that both segments share similar inhibitors.
Price. An important inhibitor was that the consumers in Mexico consider wine expensive.
Although in the market nowadays are more options that are cheaper, consumers are rather
adverse to try wines different from the types they have already selected as preferred.
“The table wine, I mean, well, as the name implies, I mean, you might
accompany the meal with a table wine, right? But the problem is that in
Mexico, well, it’s expensive to be regularly consuming, to talk about… for
example, talking about food, it’s somehow expensive.”
“My mom loves white wine, but I personally am more fan of red wine. I do not
dislike sparkling wine, there are some very good, we do not like to change…”
(Alfonso, 25 years)
Beer consumption habits. Beer is a category that is well positioned in the mind of
consumers, rooted in Mexican traditions and considered a refreshing drink in hot climate
regions.
“The beer is cheaper, here we’re more used to barbeques and it goes very good,
I mean, by tradition, the beer accompanies much more the barbeque or
something like that…” (Aurelio, 39 years)
“… Wine is for winter, normally here with the heat what you really want
is a cold beer, obviously you can drink cold wine and there may be variations
on how you prepare it, but I feel that it’s more like a European style” (Gloria,
33 years)
Size of the bottle. Some interviewees commented about feeling frustration for not being
able to consume wine more often, as the size of the bottle (750 ml) is too big for their
average consumption, because they fear that the wine loses the characteristics they were
interested in. It was also identified that the respondents tend not to acquire or ignore the
existence of certain appliances that prolong the proper state of a wine.
“For instance, my husband does not drink wine, I mean, when he really drinks
is when we get together with our wine friends, kind of for learning, knowing,
but it’s not something that he enjoys. Generally he does not drink alcohol, so
for me it’s very difficult, I mean, I’d like to drink wine, but I know that
if I open a bottle I’m going to drink an eights or little more and it will be there
and I’m not going to drink it in three days and for me that is very frustrating
because I know that wine will go degrading when oxygenating starts, then
I’ll lose a bottle of wine because I’m drinking it by myself, then the
presentations of wine, from my point of view, in the country are not coupled to
the consumption, I mean, we really are a country that do not consume too much
wine and, well, the bottle should be smaller…” (Beatriz, 30 years)
“Well I think that both drinks are popular and is more the situation how you
drink it, it’s more bearable to have a bottle of beer that you go and buy a carton
[24 beers]or a six and then you’re drinking it straight from the bottle, and for
example wine at a party in a house you should be somebody that really likes to
drink it to be bringing glasses, I mean to drink it how it really should be, well
you can take it in red cups that it’s ok, but not if it’s a casual party…it is more
common and easier to drink beer…” (Estrella, 27 years)
60 R. Castaño et al.
Wine consumption in Mexico is very low compared with global consumption. It was
found that, in this market, there are two very different groups of consumers: there are
knowledgeable people accustomed to this drink (a small segment of the market), and, on
the other hand, there are many potential consumers who express interest and curiosity in
wine. A distinction of these people is that they have tried and not frequently drink it, but
we noted the absence of a trigger that leads to a greater involvement in this culture; i.e.,
promotion to wine production via subsidies as happens in countries with a greater focus
on wine. Trends and fashions, like those related to tequila, could be examples of triggers.
In Mexico, despite the prevailing misinformation of the new wine consumer segment,
wine is seen as a vehicle to fulfil aspirations and achieve recognition and self-realisation,
including visiting specialised stores, following recommendations, speaking with
knowledgeable people, and performing a ritual for the consumption. However, on many
occasions, the consumer does not really know what he or she is buying, but believes that,
with it, a better social status is reached. This market has growth potential, as has been
demonstrated; however, there are barriers in different senses that the consumption of
wine faces. These barriers are inherent to the individual like misperceptions and
misinformation, related to society considering that wine is an elitist product, and finally
related to the market that does not offer products that meet the needs of the Mexican
consumer. The findings of our study show that, in Mexico, retailers do not offer a variety
of presentations appropriate to the consumers’ need. An example would be the Tetrapak
presentations, ‘Copa di Vino White Zinfandel’, and more options in half bottles at lower
prices.
The findings of this research paper could be useful for national and international wine
producers interested in the Mexican market as well as for distributors. Both specialised
stores and supermarkets have work to do to understand the motivators of consumers in
these major segments, from the proper manner to make the first approach to the adequate
marketing mix. It is important to recognise that the techniques deployed for each group
must be different. A better understanding of the perceptions, motivations and consumer
behaviour of each segment will help define the most suitable products that will fulfil to a
greater extent the market’s needs. The approach of wine as a social product has emerged
throughout this research.
given the circumstances of the market, we were more likely to receive information from
those of the first group.
This paper attempts to establish the basis for further investigations that can address in
a particular modus each of the segments found here as well as new trends that may affect
the production, commercialisation and consumption of wine in Mexico.
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Note
1
The Old World refers to countries with a wide documented story of consumption and wine
elaboration amply associated with the Mediterranean zone countries, whereas The New World
countries represent the rest.