Aesthetics, ontology, and objective wine knowledge : An exploration of unique luxury wine Generation Y market segments in an emerging economy

Abstract: Generation Y has been described as an important emerging market for the luxury wine industry in South Africa. However, research on this specific generation’s behaviour in relation to luxury wines is limited. A review of the literature further suggests the need to revisit segmentation strategies and the identification of new consumer markets in the wine industry. The purpose of this paper, therefore, is to develop unique luxury wine consumer market segments among Generation Y consumers in South Africa. Using a quantitative approach, responses from 232 Generation Y consumers were collected and analysed using cluster analysis. Four unique luxury wine consumer segments were developed, based specifically on the respondents’ aesthetic and ontological orientation towards luxury wines, as well as their level of objective wine knowledge, allowing for the development of segments using a distinct approach. The findings extend the work of Berthon, Pitt, Parent and Berthon (2009) in their typology of luxury consumers, and contribute to the body of knowledge about Generation Y’s objective wine knowledge levels (the knowledge they truly possess). The findings also provide marketing managers with unique segments of Generation Y luxury wine consumers in South Africa, and are accompanied by different proposed positioning strategies to market luxury wines to each of the segments