Abstract
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.