Wine Marketing: Different Wine Drinkers (3) – Risk and Confusion

Wine Drinkers are often confused about wine. They need to make a decision about what wine to purchase and yet often the quality and taste profile is uncertain – or risky.

They take certain measures to reduce that risk including seeking information, tasting, relying on well known brands, and relying on price as an indicator of quality. Some market research* has been done by the same people who came up with some Drinker Segments (see my post Wine Drinker Differences 2).

I briefly outline it here.

Risk Reduction Strategies

Johnson and Brewer found that Experimenters used the following strategies to reduce risks depending on the wine price point:

<A$15 per bottle

1. Rely on favourite brands
2. Price
3. Rely on well known brands

$15-25 per bottle

1. Opportunity to try before buying
2. Seek information before buying
3. Price

>$25 per bottle

1. Seek information before buying
2. Opportunity to try before buying
3. Price

“Seeking information before buying” is either the first or second risk reduction strategy an Experimenter has for the higher price ranges.

In comparison,

• the Conservative segment would rely on favourite brands for the middle price point, then look to have an opportunity to try for the other two price points.
• the Image Oriented segment would look to try before buying, except for the bottom price point where it would rely on brands.

Wine retailer relevance?

• A website provides the information that two of the three target segments are looking for to reduce the risk of making a bad choice.
• Well known brands are an important part of the range.
• In-store wine tasting (perhaps by machine) is a winning strategy.

What ways have you seen wine consumers minimize the risk of making the wrong decision?

* Johnson,  T, & Bruwer. 2004. “Generic Consumer Risk-Reduction Strategies (RRS) in Wine-Related Lifestyle Segments of the Australian Wine Market” International Journal of Wine Marketing  Volume 16 Number 1