Behavioural Segmentation in the Australian Wine Market Using Conjoint Choice Analysis

Abstract

A methodology for segmenting the Australian wine market on a behavioural basis is proposed and illustrated. The initial segmentation is accomplished by using estimated conjoint part‐worths for the attributes of price, variety, area and vintage as criteria in a cluster analysis. A multinominal logit choice model is then estimated for each segment using data from a conjoint choice experiment in order to determine what critical variables drive the choice process in each segment. The results illustrate the usefulness of a behaviourally‐based segmentation scheme when coupled with conjoint choice analysis in determining critical choice drivers.